Basics of investment
Mutual Funds- A mutual fund is an market linked product made up of an
assortment of stocks bonds and other types of investments. The percentage of
high risk to low risk differs in each fund and sets the overall risk of the fund.
While there are no ways to gauge the market with any real accuracy it is
generally felt that mutual funds are much more secure than individual stocks.
This makes them ideal for beginning investors, however the performance of
many funds can keep even an experienced investor happy with returns gained.
Annuities- While an annuity can use a mutual fund as its vehicle many
annuities are linked to fixed accounts or use index markers. Annuities accept
money over an extended period or in a lump some. After a set period of time
the annuity begins paying money back. The money paid back can be arranged
in several ways either percentages or flat amounts per month or year.