tailieunhanh - A guide to Understanding Mutual Funds

When considering demand side factors, we find that wealthier countries, measured by GDP per capita, and countries with a more educated population have a larger mutual fund sector. These effects are particularly pronounced for the equity sector, which may require a higher level of investor sophistication. Internet penetration is also positively related to the size of the mutual fund sector, but it is highly correlated with the other demand size variables. In addition, the mutual fund sector is larger in countries where a larger fraction of pension plans are defined contribution plans. . | O INVESTMENT COMPANY INSTITUTE a guide to Understanding Mutual Funds A mutual fund is a type of investment company that invests in a diversified portfolio of securities. To The Reader The Investment Company Institute is pleased to bring you A Guide to Understanding Mutual Funds. This guide one of several in the Institute s Investor Awareness Series is intended to explain mutual funds and the basic principles of investing. During the past decade interest in and information about investing has increased dramatically. Technological advances have ushered in a vast supply of new services that allow you to invest with ease. Mutual fund shareholders have benefited from these technological advances as funds have continually offered improved services to meet changing investor needs. Still the most important advantages mutual funds offer over other types of investments remain unchanged since the first fund was offered in 1924 professional management the security of knowing your money is managed by a team of professionals devoted to reaching your investment objectives and diversification the ability to invest affordably in a wide range of securities and reap market rewards while diminishing accompanying risks. This guide is designed to increase your awareness of the benefits of funds and investing and help you set realistic goals and expectations. If you would like to learn more please visit our website at . Paul Schott Stevens President Investment Company Institute Table of Contents About Mutual What Is a Mutual Fund .3 Why Invest in a Mutual Fund .4 Stock Funds .6 Bond Money Market Investing How Mutual Funds Are Other Types of Investment Establishing an Investment Establishing Goals and Realistic Three Common Investment Figuring Out Your Retirement Needs .14 Dollar- Cost Establishing Realistic Expectations About The .