tag:blogger.com,1999:blog-6474024174085167013.post4790338366944337872..comments2024-02-16T08:42:37.676-06:00Comments on Passing the Series 65 and 66 exams: What the heck is a mutual fund anyway?Unknownnoreply@blogger.comBlogger2125tag:blogger.com,1999:blog-6474024174085167013.post-14586632066564445252010-04-21T22:31:00.542-05:002010-04-21T22:31:00.542-05:00Hi, Daniel.
You couldn't say that mutual funds...Hi, Daniel.<br />You couldn't say that mutual funds are safe relative to stocks, necessarily. You could say that mutual funds offer diversification that an equal investment in individual stocks or bonds wouldn't achieve. Mutual funds can lose money really fast, actually, especially over the short-term. Look at a prospectus for a growth fund and see how volatile and unpredicatble the returns are--how they can lose 40% or more of their value in a year, before figuring in expenses or any sales charges. Compliance departments determine exactly how a firm's registered reps should phrase things--and how they shouldn't.B Walkshttps://www.blogger.com/profile/13428079363476989854noreply@blogger.comtag:blogger.com,1999:blog-6474024174085167013.post-77984709430009428792010-04-21T14:56:15.185-05:002010-04-21T14:56:15.185-05:00Ah, thank you very much. I remember your describi...Ah, thank you very much. I remember your describing a mutual fund as a big "portfolio pie" in your Series 7 book. <br />So, mutual funds are relatively safe when compared to stocks, correct? <br />I know a lot of my clients and prospects are interested in investing, but they don't have $100,000, for example, and the risk tolerance to purchase stocks.Daniel Jinsub Leehttps://www.blogger.com/profile/18083813918922576142noreply@blogger.com