Dear Money Lady, can you explain what mutual funds are, and which ones I should consider?
Of course! Let’s start by giving you a general overview of what a mutual fund is and why you should use it when investing. A mutual fund, (MF) is just that – a fund of different types of products such as stocks, bonds, and money markets. When you invest in a MF you invest money into the fund with everyone else, and by doing so, your contribution is measured in units. You will be given a number of units based on the daily market price called a NAV price per share (net asset value) and you will share in the income, gains, losses, and expenses of the fund you now partially own. MFs are a great way for any investor to take advantage of buying into a fund, managed by a professional investment specialist, whose sole goal is to analyze the financial markets and monitor performance. As well, [...]