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| Topic: |
Business
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| Number of pages / Number of words: |
5 / 1128 |
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For example, funds can reduce risk by spreading it among a large number of investments, if one stock performs badly, its impact on the overall portfolio is lessened. Funds can also reduce risk by investing in different asset classes: stocks (which can include international as well as U.S. stocks), bonds, cash and other securities...
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stocks), bonds, cash and other securities. Many mutual funds can be purchased commission-free, reducing the overall impact of commissions and expenses on a portfolio. Also, by pooling money accepted from many investors, mutual funds can reduce the percentage that expenses eat up in a portfolio. Many investors strive to keep commissions as low as possible, but they can still take 3 to 5 percent of an investor's portfolio...
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economics buying mutual funds
Funds flow through the financial system from surplus entities to deficit entities in various ways. For example, funds may flow via financial intermediaries or through equity markets or through debt markets. How do you account for the existence of ...
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