InfoGuides: *Personal Financial Literacy Resource Guide*: Chapter 13: Investing in Mutual Funds

Chapter 13 Introduction

This chapter describes mutual funds as an investment alternative. We begin our discussion by considering why investors purchase mutual funds. Then, we examine the characteristics of closed-end funds, exchange-traded funds, and open-end mutual funds. The differences between load funds and no-load funds and the different fees associated with mutual fund investing are explained. We describe the major categories of mutual funds in terms of the types of securities they invest in. Finally, methods that can be used to evaluate mutual fund investments and the mechanics of mutual fund transactions are presented.

LO 13.1: Explain the characteristics of mutual fund investments

Investor.gov: What are Mutual Funds?
Brought to you by the SEC
Investopedia: The ABCs of Mutual Fund Share Classes

LO 13.2: Classify mutual funds by investment objective

Investopedia: What is a Mutual Fund?
US DOL: Investor Bulletin: Target Date Retirement Funds
Target date funds, which are often mutual funds, hold a mix of stocks, bonds, and other investments. Over time, the mix gradually shifts according to the fund’s investment strategy. Target date funds are designed to be long-term investments for individuals with particular retirement dates in mind. The name of the fund often refers to its target date. For example, you might see funds with names like "Portfolio 2030," "Retirement Fund 2030," or "Target 2030" that are designed for individuals who intend to retire in or near the year 2030.

LO 13.3: Evaluate mutual funds

Fund Analyzer
Analyze and compare the cost of owning funds. Brought to by the Financial Industry Regulatory Authority (FINRA)
Yahoo Finance: Top Mutual Funds

LO 13.4: Describe how and why mutual funds are bought and sold

Learn More about Mutual Funds

Morningstar Guide to Mutual Funds by Christine Benz
ISBN: 0470137533
Publication Date: 2007-10-26
GUIDE TO MUTUAL FUNDS SECOND EDITION "Picking actively managed mutual funds is no mean challenge. And asthe recent era underscores, past performance is of little help. TheMorningstar Guide to Mutual Funds helps cut through the fog with asolid volume of constructive information. The centralmessage--'truly diversify, keep it simple, focus on costs, andstick with it'--is not only timeless, it is priceless." --John C. Bogle, founder and former CEO, The Vanguard Group "Successful investors know they must do their own due diligence.Morningstar has done much of that homework in this guide. Leave itto Morningstar to get it right, offering smart ways to pick, buildand monitor a portfolio. It's a commonsense guide that should graceevery investor's shelf." --Ted David, CNBC Anchor "There's nothing Morningstar doesn't know about mutual funds. Andat last, for ready reference, there's a book. You'll findeverything here you need to know about managing fund investments,inside or outside a 401(k)." --Jane Bryant Quinn, Newsweek columnist and author of Making theMost of Your Money

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