Mutual Funds by xiuliliaofz

VIEWS: 28 PAGES: 7

									 Mutual Funds
       Lesson 3.2
Investigate Mutual Funds
             Today’s AIM
 Describe an expense ratio and why is it
  important.
 Explain where to go for information on
  mutual funds.
             Lighten the Load
   Load Funds
    – Charge an up front sales commission or a
      “load” on your investment.
   No-Load Funds
    – No sales fee.
    – If you learn to make your own mutual fund
      decisions you can buy No-Load funds and
      have more money to invest.
               Expense Ratio
 In addition to loads or commissions, a
  number of other fees are charged with
  mutual funds.
 These fees are part of the fund’s expense
  ratio.
    – Expressed as a percentage of assets deducted
      each year for fund expenses
    – Avoid funds with expense ratios higher than
      1.5%
      Evaluating a Mutual Fund
   Mutual Fund Table
    – Name
    – NAV – Net Asset Value, per share value
      calculated by the fund.
    – NET CHG – Gain or loss in NAV, based on
      prior day’s NAV.
    – YTD% RET – The percent return for the year
      to date.
         In-Depth Information
 There are several sources to find
  information on Mutual Funds.
 Magazines
    – Forbes, Money, Business Week, Kiplinger’s,
      and Consumer Reports.
   Internet (of course), here are a few sites
    – www.investorama.com
    – www.quicken.com
    – www.mfea.com
         Review today’s Aim
 Describe an Expense Ratio, and why is it
  important.
 Explain where to go for information on
  mutual funds.

								
To top