1. Chapter 14 Investing in Mutual Funds, Real Estate, and Other Choices
MYPF Chapter 14
13-Sept-2001
Chapter 14 Investing in Mutual Funds, Real Estate, and Other Choices
Investing in Mutual Funds
Investing in Real Estate and Other Choices
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2. Lesson 14.1 Investing in Mutual Funds
Explain what mutual funds are and their advantages.
Discuss different types of mutual funds.
Describe how to evaluate mutual funds.
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3. What Are Mutual Funds?
A mutual fund is a professionally managed group of investments using a pool of money from many investors.
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4. Advantages of Mutual Funds
Professionally managed
Liquid
Diversified
Require only a small minimum investment $500-$3000 after that you can make regular purchases as often as you like. Ex 100$ a month
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5. Mutual Fund Risk/ Return Categories
Growth funds
Whose investment goal is to buy stocks that will increase in value over time.
Income funds
whose investment goal s to buy bonds that produce current income in the rom of interest.
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6. Mutual Fund Risk/ Return Categories
Growth and income fund
Whose investment goal is to earn returns from both dividends and capital gains.
Money market funds
Invest in safe, liquid securities, such as Treasury bills, bonds that mature in 3 weeks to 6 months.
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7. Mutual Funds of Various Risk Categories
Global funds
Is a mutual fund that purchases international stocks and bonds as well as U.S securities.
Index funds
A mutual fund that tries to march the performance of a particular index by investing in the companies included in that index. Ex. Dow Jones – (blue chip stocks)

8. Evaluating Mutual Funds
Net asset value
NAV= value of portfolio-Liabilities/ number of shares outstanding of the fund.
Prospectus
Costs and fees
Front-end load
Back-end load
No-load fund
Print and online sources of mutual fund information

9. Lesson 14.2 Investing in Real Estate and Other Choices
Describe direct and indirect real estate investments.
Discuss some of the risks and responsibilities of owning rental property.
Describe investments in precious metals, gems, and collectibles.
Discuss the nature of futures and options markets.
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10. Direct Real Estate Investments
Vacant land
Single-family houses
Duplexes, apartments, and condominiums
Recreation and retirement property
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11. Indirect Real Estate Investments
Real estate syndicates
Real estate investment trusts (REITs)
Participation certificates
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12. Owning and Managing Rental Property
Mortgage
Depreciation
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13. Investing in Metals, Gems, and Collectibles
Precious metals
Gems
Collectibles
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14. Investing in Financial Instruments
Futures
Option
Call option
Put option
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