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

2. GOALS © South-Western Educational Publishing 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.

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 Mutual Fund Risk/ Return Categories  Growth funds  Income funds  Growth and income funds  Money market funds

6. © South-Western Educational Publishing Mutual Funds of Various Risk Categories  Global funds  Index funds

7. © 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

8. GOALS © South-Western Educational Publishing 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.

9. © South-Western Educational Publishing Direct Real Estate Investments  Vacant land  Single-family houses  Duplexes, apartments, and condominiums  Recreation and retirement property

10. © South-Western Educational Publishing Indirect Real Estate Investments  Real estate syndicates  Real estate investment trusts (REITs)  Participation certificates

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

12. © South-Western Educational Publishing Investing in Metals, Gems, and Collectibles  Precious metals  Gems  Collectibles

13. © South-Western Educational Publishing Investing in Financial Instruments  Futures  Option  Call option  Put option