Kent Thune’s main ideas in the
article of Mutual Funds, where
the definition of a mutual fund, baskets of investments, the advantages of
mutual funds, and basic types of mutual funds. A mutual fund is and investment
security type that enables investors to pool their money together. Baskets of
Investments hold dozens or hundreds of stocks and bonds, but the investors do
not own the holdings, but part of the mutual fund. The advantages of mutual
funds are simple, investors simply do not have the knowledge or time to start
making their own portfolio of stocks and bonds; buying a portfolio enables them
to have a professionally managed diverse portfolio. Also, it costs as little as
$1,000 to own a professionally managed diverse portfolio. There are two basic
types of mutual funds, stock funds, and bond funds, plus mutual funds are
cheaper and easier to start.
The key details in Kent Thune’s
article where the advantages and types of mutual funds. The advantages of
mutual funds are simple, diversified, and accessible. They are simple because
most people don’t know how to start their own portfolio. All investors have to
make sure not to but all their eggs in one basket. Plus, it doesn’t cost a lot
to start investing in mutual funds. The basic types of mutual funds are stock
funds and bond funds. Although most people like to invest in index funds.
I believe Kent Thune’s intended
audience for his article on mutual funds, was for ‘new’ investors. People who
have no idea what a mutual fund is, and have no idea how to even start making
their own portfolio. His purpose for writing this article was to inform ‘new’
investors about what a mutual fund actually was, and what they advantages of
having one were.
Some of the most important things
to know about mutual funds for ‘new’ investors can be found in this article.
Mutual fund baskets, can holds dozens to hundreds of stock/bond funds. Also,
Kent Thune informs you on the advantages of mutual funds -- simplicity,
diversity, and accessibility. The most common types of mutual funds are also
mentioned in this article – stock funds, bond funds, and index funds seeming to
be the mutual funds most gravitate toward.
My clients are my parents who are
in there early 50’s and no just about nothing about mutual funds. So, this is
what I have to say to inform them about mutual funds. Mutual funds have many
advantages, one being how simple they actually are compared to what people
think about them. Most who start investing don’t know anything or close to
nothing about mutual funds. So, buying a professionally managed mutual fund,
will help you in the long run for not knowing next to nothing about investing
concepts and strategies. Mutual funds are also very diverse meaning that they
are not going to put all your eggs in one basket, and are going to try and make
you as much money as possible. They are also very accessible to anyone, because
they don’t cost that much to start. Plus, with a little research anyone can get
started investing in mutual funds within minutes or just a couple of hours.
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