At this point, we've come to two conclusions: First, you should invest in stocks, if at all possible, and second, you should hold on to these stocks as long as the companies behind them continue to do well. The next thing you have to decide is whether to pick your own stocks or let somebody else do it (Lynch 116).
There's a lot to be said for taking the easy out, especially if you are bored by numbers and couldn't care less what happens to Kodak's earning , or whether Nike makes a better shoe than Reebok (Lynch 116).
That's why mutual funds were invented, for people who wants to own stocks but can't bothered with the details. In a mutual fund, your only job is to send money, which gives you a certain number of shares in the fund. Your money is lumped together with a lot of other people's money (you never actually meet them but you know they are out there). The whole pile is handed over to the expert who manages the fund (Lynch 116).
What is your definition for mutual funds?
In my words a mutual fund is a pool of money provided by investors and handled by professionals.
ReplyDeleteIn my words a mutual fund is a pool of money provided by investors and handled by professionals.
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