Your money will grow for you but first you must learn how to do this without risk. Fidelity Investments experts stand ready to help. The best way to learn about mutual fund is to check out the business reports each day online. Learning about mutual funds and how they differ from other forms of investment is easy and is free at Fidelity’s Internet site. Their expert investors will explain the setup of these investments. They will explain to you why these are generally less risky than individual stocks and bonds and they will show you how to invest. If you have an extra $200 dollars you can afford to set aside, Fidelity will show how get started investing. (Retirement accounts require $ 2, 500 dollar at the outset.
Fidelity is one of the more respected investment companies and they have a good reputation in the business world. Their holdings are impressive. In whatever field of endeavor, communications, health, financial, real estate, utilities, precious metals, technology, natural resources, they have you covered, investment-wise.
But first, you must get acquainted with this giant investment company. Their most recent ad in Time magazine deals with retirement funds. This is one fund where it is especially important to have a diversified portfolio. Therefore, mutual funds would be a choice over individual stocks.
Mutual funds are funds created with investors money where stocks and bonds and securities are lumped together into one convenient package. This money can be invested in various stocks, or various bonds, or they can be a sampling of each, as well as probably other securities.
The reasoning behind this investing arrangement is should one or two options prove to be costly mistakes, not all will be. Mutual funds, then, are designed for safety. A few of the holdings in a fund may drop in earnings but a few may raise enough to make up for the other’s poor performance. And too, it allows for those with little time and possibly scant investing expertise to engage in investing.
A company such as Fidelity puts together funds with such names as Fidelity Select Communications (FSTCK); Fidelity Select Biotechnology (FSI0X); and many others in varied fields. Basically, there are four different types of mutual funds:
Money market funds make money for the investor faster than longer holding funds. The manager of these funds sells shares and buys short-term securities and then shares the dividends with their shareholders. Bond funds are made up of various types of bonds. Domestic stock funds are mutual funds in one’s own home country, as an example, in the United States. International stock funds where funds are bought and sold internationally.
Fidelity mentions other funds such as their freedom funds that have the option of changing the style of your investing as investors are ready to retire. Their Fidelity Asset Manager Funds are funds with fewer restrictions as to which class of funds is involved in the trade deal. Sector funds are limited to one specific market venue such as the health field or natural resources or energy.
Then rounding out their list are Fidelity Enhanced Index Funds that are computerized generated funds and Hybrid Funds and last, but certainly not least are Specialty funds, mainly involved in real estate deals. Hybrid funds are a potpourri of stocks and bonds to make risk taking easier done.