How to choose my mutual funds

How to choose my mutual funds - holding all or a...

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How to choose my mutual funds Stock funds differentiate themselves by the types of securities they invest in. For  example: % Growth funds      focus on smaller companies that have the potential for large  capital gains. % Income funds      focus on larger companies that pay regular dividends. % Sector funds      focus on companies in a particular sector such as technology or  financial services. % Foreign funds      buy securities of companies that trade on foreign exchanges such  as the Chinese stock exchange. % Index funds      attempt to match the performance of a particular market index, by 
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Unformatted text preview: holding all or a "representative sample" of the securities in the index. % Index funds are not actively managed and most rely on a computer model for investment decisions, which leads to lower management fees and expenses. The majority of exchange traded funds such as the Spiders (SPDR) and the Diamonds (DIA) track market indices like the S&P 500 and the Dow, respectively. Read more:
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This note was uploaded on 02/26/2011 for the course BUSINESS Bus 063 taught by Professor Hidi during the Spring '11 term at West Valley.

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