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Mutual Funds, Stocks and Bonds
Posted on August 7th, 2007 No commentsWhat is a Mutual Fund? It is an investment tool that basically allows a group of investors to pool their money together to gain access to a larger portfolio of stocks, or bonds. A mutual fund is managed by a fund manager who takes charge of investing the money for all the shareholders, or those who invested in the mutual fund.
What is a Stock? A stock is a share of ownership in a publicly-listed company or a commercial enterprise and is the most common ownership investment in the financial market.
What is a Bond? A Bond fund, also known as a fixed income fund is a form of a lending investment tool where you get your returns on the principal plus interest over a predetermined amount of time.
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Be a Responsible Borrower
Borrowing a significant amount of money through a loan entails a certain level of discipline and commitment in order to ensure that your obligations as a borrower are consistently met. There is nothing worse than reneging on your responsibilities to the lending institution or bank that approved your loan application. By not following your responsibilities you will put a negative mark on your credit records. Moreover, the assets that you have declared (if it is a secured loan) may become in danger of being foreclosed. Read More