How a Mutual Fund Works: You choose the Fund or Funds that are right for your style of investing. Each Fund is different and the Fund Manager must follow strict rules that are defined in the prospectus when choosing how the money is invested.
Stocks only, no dividends. Bonds, Money Market, and Stocks these do
produce dividends. A Bond Fund that only invested in Bonds and money market instruments. Is a fund invested in Stock or Bonds overseas. Money Market instruments are primarily short term debt instruments, primarily 90 days to one year maturity's. Money Market funds are not FDIC insured. Although they are the most stable of any mutual fund almost always returning a positive return. Social Awarness Fund typically does not invest in stocks of companies that invest in Liquor, Tobacco, Gambling, Nuclear Power, or Oil companies. A sector fund is a fund that invests in a particular industry or company type, such as semiconductor companies, or electronics, or home mortgages. This type of fund is typically much more susceptible to risk but can also give tremendous gain if that industry or sector is aggressively expanding. |
