Chapter 2
Buying and Selling Mutual Funds
IN THIS CHAPTER
Exploring reasons to choose mutual funds
Looking at potential drawbacks of funds
Considering load versus no-load funds
Mutual funds were one of the 20th century’s great wealth-creating innovations. Funds transformed stock and bond markets by giving people of modest means easy access to investments previously limited to the rich. The fund-investing concept is likely to remain popular for years, letting ordinary and not-so-ordinary people build their money in markets that would otherwise intimidate them. That’s because the idea of packaging expert money management in a consumer product, which is then bought and sold in the form of units, is so brilliantly simple. Even journalists can understand it.
This chapter takes another look at funds, assessing their great potential as well as their nasty faults. It wraps up with a chat about the relative merits of no-load and load funds.
A Few Reasons to Buy Funds
Chapter 1 in Book 3 discusses how and why mutual funds work and why they make sense in general. The following sections give you some specific, significant reasons to make them a big part of your financial plan.
Offering ...
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