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Mutual Fund-amentals

Date Submitted: 06/02/2003 03:48:33
Category: / Literature / English
Length: 3 pages (948 words)
Big, fast, easy money. It is possible, thanks to mutual funds, but first you must determine whether you are willing to assume the obvious risks involved. You must also determine your earnings goals. Big dividends, quick? Expect higher volatility. Not a risk taker? Choose lower-volatility investments, but don’t quit your day job. However, the first thing a potential investor must know is, of course, the basics, which is the premise of this speech. There …
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…are the stock categories of each fund: Mid Value, Mid Value, Small Value, Large Value and Large Growth. Based on the percentage yields, and load fees of the funds, Oakmark I looks like your best match. Now, if you were to buy 315 shares of this fund at its current NAV, $31.71, and sell at this time next year, it is conceivable that the fund could pay dividends of as much as 9%, or about $900. See? Easy money.
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