missions and fees for mutual funds. Make your money work for you, not for your stockbroker. EIGHT: Make sure your mutual fund investment earns enough so that your nest egg at least keeps pace with rising prices. NINE: Know when to sell your mutual funds. Which is almost never. TEN: Invest to beat the taxman. Take advantage of an Individual Retirement Accounts (IRAs) and other tax shelters. Each mutual fund has its own strategy and investment objective for making money. It's up to you to select the right mutual fund for you based on your own needs. There are Two types of mutual funds. The first, Open end funds, are the most common and this type of investment company can issue an unlimited number of ownership shares. The second, closed-end investment, can’t issue new shares in response to people wanting them. They have a fixed number of shares. These type are more like common stock then like a mutual fund (Keown, 2001) . Then there are load and no-load funds. Basically a load is a commission on your ownership of the funds. Most loads are about 5%. . No-loads don’t’ have this fee. However there are other fees to consider. For the most part you are better off with a load-free fund (Rowland, 1997). There are many advantages in investing in mutual funds. Some include, Instant diversification, professional mangement, convenience, flexibility, marketability, and liquidity. Unfortunately, as in all things, there are disadvantages. Some include, No Guarantee on your return, there is risk involved, some have minimum investments that can be a large sum, sales charges and ongoing fees, and not many local branch offices. For the most part if you have a problem with your fund you have to deal with it on a computer or over the phone. (Mutual, 2001). I am only going to talk about stock mutual funds, balanced mutual funds, and Bond funds. ...
