Fund Company
Would a rose by any other name smell as sweet? We don’t know—we’re partial to gardenias—but what we do know is this: fund companies go by a number of other names—investment companies, fund sponsors, open-ended fund companies—but they all perform the same sweet, sweet function: investing our money in financial securities.
Here’s how it works: we hire a fund company to help our money make money. We tell them what we want (i.e., we want to invest for maximum long-term growth potential; we’re all about the short-term gains; we want to do everything possible to retire before we turn 40) and they decide how to best allocate our investment capital based on our goals. Maybe they’ll put it in mutual funds, maybe they’ll put it in the stock market, or maybe it’ll be one of those a-little-from-column-A-a-little-from-column-B situations.
Either way, our money’s going into some funds. They might also offer us other financial services, like tax guidance and trust fund management, but the point is this: they help us manage our investment portfolio so we can concentrate on other things. Like planting more gardenias.
See: Wrap Account. See: Family Office. See: Fund of Funds.
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Finance: What is a Diversified Mutual Fu...20 Views
finance a la shmoop what is a diversified mutual fund? all right people
listen up it's lots of investments stocks bonds exposure to risk and reward [Risk and reward punch man in face]
everywhere energy, telecom, insurance, real estate, banking, chemicals, tech, retail not
enough diversity yet well those are just sectors or industries and there's a
whole bunch of them what about geography geographic diversity the US, Russia, China
Europe someday maybe Mars Elon what do you think well maybe exposures to [Elon Musk floating in space]
different currencies or commodities cycles as the diversity you seek hmm
well that's diversity Benetton eat your heart out so the bigger question is why
would you want such diversity? well the idea is that you mitigate risk by being
diverse the don't put all your eggs in one basket thing if one investment goes [Value of investment graph appears]
bust well at least you have plans B C and D to fall back on and if this is
grabbing you check out our videos on efficient markets theory for more on the
subject or maybe diversify your knowledge and watch all of our finance
videos food for thought and you know please click on the ads that we got to [Man holding begging sign]
eat around here
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