1. STOCK-BASED MUTUAL FUNDS
STOCKS
BONDS
STOCK-BASED MUTUAL FUNDS
Potential Return
BOND-BASED MUTUAL FUNDS
Certificates of Deposit
Savings Accounts
Potential Risk

2. Building Wealth. Saving and Investing
The farther up or across the arrow: the greater the risk or reward.   Label your Graphic Organizer
Interest rates: the cost of borrowing money. 
Interest rates are normally expressed as a % of the total borrowed, 
Example: for a 30-year mortgage, a bank may charge 5% interest per year.
Interest rates also show the return received on saving money in the bank or from an asset like a government bond.
Borrowers like low int. rates.  Investors like high int. rates.

4. Savings Accounts Almost no risk (FDIC: up to $250K protected)
High Liquidity
Very low interest rates --> low reward

5. Certificates of Deposit AKA: CDs/Time Deposits
$ invested and cannot be touched until it "matures" 
Interest rates are higher than savings, but still low
Very low risk
Penalties for pulling out money before maturity date.  Less liquid than Savings/Checking Accounts

6. https://www. franklintempleton
Mutual Funds

7. Mutual Funds Long term investments (retirement, college fund)
Use diversification to minimize risk

8. Mutual Funds Bond-Based Mutual Funds
Mix of Corporate and Government bonds (Federal, State, Municipal)
Lower Risk than stock based bonds --> lower reward too
Stock-Based Mutual Funds
Mix of high and low risk stocks
Higher risk/reward than bond based

9. Bonds Corporate -> higher risk/reward
Some corporations are riskier than others
Government -> Lower risk/reward
Federal bonds the most secure

10. Stocks
Highest risk/reward
Some riskier than others