2011年10月15日 星期六

Mutual Funds | Bond Mutual Funds

Some investments are riskier than others. For example, let 's you have an extra $ 10,000 you want to invest. He has two friends who want to start a business and everyone needs $ 10,000 in startup costs. A friend is very reliable and already has a successful business, but is expanding. Even if not, it is certain that he return the money. You have a low risk.

The other friend has borrowed money from you before and Do not 't if you pay it back. Sometimes it was only paid $ 20 for lunch, but somehow they just conveniently forgot about it. They want to borrow money for your new business that they feel confident about, and vow to pay for it. Unfortunately, they failed in the past and companies Do not 't return the borrowed money.

The second friend is very risky, but you, your business idea sounds great. You could see to do a lot of money and you 're friend promises that you can share half the profits. On the other hand, his first friend is a fairly common idea and promise that'll you pay with an 8% interest.

They have a much more in the second friend, but that will do much more money with them. You have almost no risk to the first friend, but you 're only going to 8%, no matter how well the company does. You have to decide if they are willing to take the risk into more profit.

This is similar to the difference between investing in a stock mutual fund and a bond mutual fund. If you invest in a conservative cash bonus, you may not lose money, but are more or less guaranteed a low yield. If you invest in the stock fund, can do much more, but maybe not.

A bond mutual fund is best for conservative investors who are nearing retirement. Don 't want to risk too much money because they know they have to rely on that money in the near future. The bonds are a better choice because they are much less risky and less likely to lose money.

Those aged between 20 and 30 years, invest exclusively in stock funds in order to make as much money as possible. As they grow, little by little to change to more conservative investments.

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