Acceptance
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Dear Stanley and Sarah Small,
After reading about the situation that you are in, I have come to the conclusion that investing in a stock mutual fund would suit you the best. A stock mutual fund is perfect for you because you do not need the money for a few years and you also need an investment that is safe. To define a stock mutual fund if you are not familiar; a stock mutual fund is a large pool of money from investors that a mutual fund manager uses to buy stocks, bonds, and other combinations of assets that meet certain investment criteria.
Now the next step is to decide which type of fund that you would like to invest in. The four different kinds of funds are, capital appreciation, growth, growth and income, and equity income. Each fund is similar but there are differences. A capital appreciation funds seek maximum capital appreciation, fund managers invest in companies that they feel have the highest potential for share price appreciation without regards to dividends. The risk level for this type of fund is high. The second type of fund, growth, seek capital appreciation by investing in larger more established companies. Although, the dividends are not as high...