Money market mutual funds (usually referred to as money market funds or money funds) invest in short-term, fixed-income securities, otherwise known as money market investments. By definition, money market investments mature in less than one year. Like other mutual funds, money market funds are pooled investments that allow investors to participate

        Introduction Stock mutual funds, also known as equity mutual funds, are a type of investment fund that pools money from many investors to purchase a diversified portfolio of stocks. These funds are managed by professional portfolio managers who make investment decisions on behalf of the investors. Stock mutual funds invest in

        A world of bonds There are many different ways to type and evaluate bonds. That diversity can make buying individual bonds a challenge without some guidance. Traditionally, institutional investors have had much more access to information about bond pricing. However, as baby boomers get closer to retirement age, the bond world

        What is an investment objective? There are many ways to try to make money from investments. An investor might take on additional risk to try to profit from potential growth in the value of the shares of a stock. A retiree might prefer an investment whose chief benefit is the periodic

        What is a mutual fund? A mutual fund is an investment company that pools money from many people and invests it in stocks, bonds, or other securities. Each investor owns shares; each share represents a tiny portion of each individual security held by the fund. An investment professional handles the purchase

        A chocolate cake. Pasta. A pancake. They’re all very different, but they generally involve flour, eggs, and perhaps a liquid. Depending on how much of each ingredient you use, you can get very different outcomes. The same is true of your investments. Balancing a portfolio means combining various types of investments

What is an index? An index is a group of securities reflecting a securities market or a particular segment of a securities market. It is used to measure and report the fluctuations of the market or market corner it represents. As you might guess, stock indexes track the stock market, and bond indexes track the

        What is asset allocation? Investment in different types of assets Asset allocation is an approach to investing. It involves spreading your investments over different asset categories, such as equities, cash or cash-alternative investments, bond, real estate, foreign securities, and possibly even precious metals or collectibles. Your asset mix, the specific investments

        There are two fundamental ways that you can profit from owning bonds: from the interest that bonds pay, and from any increase in the bond’s price. Many people who invest in bonds because they want a steady stream of income are surprised to learn that bond prices can fluctuate, just as