### criterion | money | fund:

Mutual fund
* Many mutual funds invest in large cap, medium cap or small cap stocks.
* Most mutual funds are liquid, meaning they are easily turned into cash
  - belong to fund families
* Mutual Funds Discuss the ins and outs of mutual funds.
* Some mutual funds focus on a specific portion of the economy as a way to achieve their goals.
* Some mutual funds have names similar to a bank's name
  - that sound very much like the names of financial institutions
  - invest in foreign securities or other instruments
  - pay a different type of tax-free dividend, called a return of capital dividend
* allow people to easily invest in a diversified portfolio of stocks
  - small investors to enjoy the benefits of diversification
* are 'baskets' of individual stocks.
* are a collection of stocks designed to meet a stated investment objective or strategy
  - compilation of many different investments
  - diversified investment
  - popular investment vehicle for retirement plan investors
  - portfolio of stocks that are purchased to reduce the risk of the investment
  - type of investment
  - after-tax investments
  - also classified according to their size or market capitalization
  - an indirect route to invest in bonds and equity shares
  - basically a pool of money that many investors put together
  - classic middlemen, a layer between investors and actual stock ownership
  - collections of securities that are selected and managed by a fund manager
  - different from certificates in that they pay only a dividend
* are investment companies that place the shareholder's money in a wide range of stocks
  - like market indexes or industry groups
  - long-term investments
  - ongoing operations that never expire
  - organizations that many people invest in
  - organized to let investors turn their equities into cash at any time, in a hurry
  - outstanding investment vehicles
* are pools of companies professionally managed within a diversified portfolio
  - securities that are invested by a professional manager
  - securities, usually offering diversification within a single asset class
  - popular because they make investing in financial markets easy
  - professionally managed long-term investments
  - simply a type of investment that pools together thousands of people's money
* are the issuers of their shares or units
  - means by which middle America participates in the equity markets
  - repositories of our savings
  - usually the preferred method of investing internationally
* buy many types of investments
  - securities for cash, paying higher trading costs
* can be a good way for people to invest in stocks, bonds, and other securities.
* consist of a pool of money from thousands of investors
  - firms that manage pools of other people's money
  - stocks, bonds, currencies, or other investment vehicles
* employ professional managers to make decisions about what to buy and sell.
* have different costs of doing business, depending upon the type of fund
  - large positions in stocks
* involve investment risk, including the possible loss of principal.
* make up a trivial portion of worldwide index-fund investing.
* provide a way to invest in the market without buying stocks and bonds directly.
* reduce the risk of any individual security by owning many securities.
* sell securities to cover redemptions creating capital gains
  - that produce capital gains

### criterion | money | fund | mutual fund:

Index fund
* are mutual funds that are made up of the stocks that make up a particular market index
  - which are set up to mimic or copy particular groups of companies
* buy an aggregate of stocks of a particular asset class.
* hold stocks that comprise a market index.