Three Ways Your Typical Mutual Fund Is A Lot Like A Really Good Marketing Plan!

So do you currently have any type mutual funds working extremely hard for you? You know, without trying to get too technical here, (that's short code for boring.)

Mathematically speaking they (say), that's the unspecified group we often refer to, when you're not totally sure who the exact unnamed specific party is. (You simply refer to this entire unnamed mystery group as they!)

Anyway, it's said mutual fund investing on the whole (unless of course) you've got Warren Buffet like, kind of individual stock picking skills, is actually up to eight times more safer, than trying to pick individual stocks.

(Of course , let's be clear here. Investing in stocks (blue chip ) or otherwise still carries a certain element of risk, because it's not a guaranteed return on investment! Correct?)

But the main reason being a good-well managed- mutual fund portfolio reduces your overall risk, is because your stock portfolio is diversified into several different segments of the economy. At any given time.

And by investing in several different sectors throughout the entire economy,no one bad or poorly performing sector can sink your entire financial ship!

For ex; typically well performing utility stocks, the transportation sector, bio tech firms, (think big, cash rich Pharmaceuticals companies here), and really large (and therefore) presumably safe, conservative blue chip companies, like Microsoft, Walmart, McDonald's or Target etc.

These are the different types of individual stocks and segments of the economy, that a well balanced mutual & bond fund will primarily be invested in.

But it also invests in a few slightly riskier start ups, that may or may not actually pan out!

And if they don't, the fact that part of or most of the remaining part of your stock portfolio is invested in far less riskier stocks, (on paper anyway) this average, is supposedly what reduces your overall risk.

At least that's the theory these well educated hot shots tell you/us during their eye glazing presentations!

Anyway, since you could have just as easily Google d (or gone to youtube) and found all of this type of semi boring dribble or discovered most, if not all of this trivia over lunch with a really close friend or relative and or associate etc.

(You probably shouldn't bother to click the link below, especially if you really no interest in 'discovering,' three incredibly simple ways, your typical mutual fund, is just like a really good marketing plan!)