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  Mutual funds are investment products that allow number of investors to pool their money together and buy a variety of securities including common stocks, bonds and others.  Here's a comprehensive guide for beginners: #1 What Are Mutual Funds?  Definition: A mutual fund is an investment undertaking whose funds are raised through public subscription and invested in a group of securities.  Purpose: It seeks to offer the ordinary investors an opportunity to invest in a diversified and professionally managed funds.  #2 How Mutual Funds Work:  Pooling of Resources: Investors purchase units of the mutual fund, which is a proportionate interest in the fund’s portfolio.  Professional Management: Portfolio managers are the ones who make the investment decisions in regard to the investors.  Diversification: This means that unlike what is the case with other securities, mutual funds minimize risk through diversification.  #3 Types of Mutual Funds:  Equity Funds: This means that you should ma

  Why Invest in Stocks?  Stock or shares refers to the shares in a publicly owned limited company. Purchasing of stocks is wise because people can expand their wealth over a long period of time.  In the past, stock markets have proved to be more lucrative than other kinds of investments these include bonds or real estate.  Getting Started: Before investing in stocks, it's important to have a solid financial foundation When creating or updating the budget, get rid of high-interest debts such as credit card balances.  Save for an emergency fund in the range of 3-6 months of your living expenses.  Deplete all the employer sponsored retirement accounts such as the 401(k).  Types of Stocks: There are several major types of stocks to consider: Blue Chip Stocks: Large-cap shares of companies that are stable, financially sound with good earnings history.  For instance; Companies such as Apple Inc, Microsoft Corporation, Coca Cola Corporation.  Growth Stocks: Companies that are likely to ex

  Real estate investment is the acquisition, management, and ownership of real estate for the purpose of generating income and or to increase the value of the property it owns.  Here are some Basics of Real Estate Investing: #1 Understanding Real Estate Investing: Real estate investing involve acquiring of property with an aim of getting some form of return whether in terms of income or capital appreciation.  Some of the types of property include the residential property which consist of house, condominium, town house among others, the commercial properties, these include office space, retail places, and the ware-house, the industrial properties, these include the factories, industrial parks among others and the last one is land which is an unimproved property. #2 Investment Strategies: Buy and Hold: Buy investments to let and achieve successive yields.  This strategy believes in the ability to generate predictable rental income and the property’s value appreciation in the long run. Fl