1. © South-Western Educational Publishing Chapter 14 Investing in Mutual Funds, Real Estate, and Other Alternatives Investing in Mutual Funds Investing in Real Estate Other Investment Choices

2. GOALS © South-Western Educational Publishing Lesson 14.1 Investing in Mutual Funds Explain why people invest in mutual funds and the types of mutual funds available for investing. Describe how to evaluate mutual funds before buying.

3. © South-Western Educational Publishing What Are Mutual Funds? A mutual fund is a professionally managed group of investments using a pool of money from many investors.

4. © South-Western Educational Publishing Advantages of Mutual Funds Professionally managed Liquid Diversified Require only a small minimum investment

5. © South-Western Educational Publishing Types of Mutual Funds Growth fund Income fund Balanced fund Bond fund Global fund Index fund Money market fund

6. © South-Western Educational Publishing Evaluating Mutual Funds Net asset value Prospectus Costs and fees Front-end load Back-end load No-load fund Print and online sources of mutual fund information

7. GOALS © South-Western Educational Publishing Lesson 14.2 Investing in Real Estate Describe direct real estate investments and explain their advantages. List indirect real estate investments and their features. Discuss some of the risks and responsibilities of owning rental property.

8. © South-Western Educational Publishing Direct Real Estate Investments Raw land Detached houses Duplexes Apartments Condominiums Recreation property Retirement property

9. © South-Western Educational Publishing Indirect Real Estate Investments Real estate syndicate Real estate investment trust (REIT) Participation certificate

10. © South-Western Educational Publishing Owning and Managing Rental Property Mortgage Depreciation

11. GOALS © South-Western Educational Publishing Lesson 14.3 Other Investment Choices Identify potential investment choices in precious metals, gems, and collectibles. Discuss the nature of futures and options markets.

12. © South-Western Educational Publishing Metals, Gems, and Collectibles Precious metals Gemstones Collectibles

13. © South-Western Educational Publishing Commodities Futures market Cash market Call option Put option