Mutual Fund

-A mutual fund is a company that pools money and investors together and invests money in securities like stocks, bonds, and short term debt.

-The average annual interest rate ranges from .5-1% annually wi an average 3.65% annual return rate.

-This has a moderate risk because although it is a diversified investment, it still poses some risk with potential return rates.

-Some benefits to investing in a mutual fund are dividend payments, Capital Gains Distributions, increased NAV, and a greater risk for higher potential returns than just a savings account.

-Mutual funds provide investment that is both relatively safe and lucrative.

-To buy a mutual fund, you can either go through an insurance company or buy through an individual broker.

-I chose to invest a bigger portion of my assets because it's a safe way to invest with a relatively good potential return rate.

I decided to invest $25,000 into a mutual fund because it's a good way to diversify assets and has average return and moderate risk (not too high, but not too low).

$25,000