MUTUAL FUNDS » Best Mutual Funds

With the big hits in the financial industry in recent months many people are being cautious about their investment. If you're tolerance to risk is low, but still want to make some returns on your investment you may want to consider putting your money into Treasury bills or mutual funds. While very stable, Treasury bills (also known as t-bills) tend to have lower rates, and hence lower yields, than commercial bills.

Both commercial bills, also known as commercial paper, and Treasury bills are popular investment products. Commercial bills or paper are issued by corporations, and t-bills are issued by the federal government. The question for the investor is, "Which of these issuing entities is most likely to be able to pay off their bill when it matures?" Invariably it is the Treasury bill, because the government can raise tons of money through taxes, whereas an individual corporation has limited revenue (by comparison). So, since no corporation can match the Treasury bill's credit rating, the issuing corporation has to instead tempt investors with the promise of a higher yield. Therefore, Treasury bills tend to have lower rates than commercial bills.

As an investor, it usually makes sense to invest in a fund that diversifies between many commercial bills: that way you diversify your risk a bit, and still get the higher rates of commercial paper.

Still need more information about Treasury bills , commercial bills, commercial paper, and other investment products? Be sure to read "What is a Treasury Bill?," read through our articles on investments, and visit treasurydirect.

Checking accounts and savings accounts are the first steps towards building financial independence. As time goes on and more money is earned through career advancements, it becomes more important to increase the sophistication of your portfolio. If you have some extra money that you do not expect to need for a few years, you should consider managed funds.

When it comes to investment strategies there are different routes you can pursue at any given time. They are:

• Short Term Investments- such as money market and CDs
• Long Term Investments- including managed funds
• Retirement Planning- along with IRAs and 401k

The managed funds route is quite attractive if you are comfortable with the risks and can survive without touching that money for several years. Managed funds offer higher returns, on average, than many other investment products. Unfortunately, the returns are not very predictable, so you can easily see a 5% or 10% drop in the very first year after you invest. Only long-term investors would be ok with such risk.

Money market mutual funds are constructed to have options that work well for small investors. They are a type of fund that is short-term, usually lasting for less than a year. There are many types of mutual funds. MMMFs allow for short-term investment opportunities. This is perfect if you are...

Money Market Mutual Funds or MMMFs are built to have choices that work well for small investors. They are a type of fund that is short-term, most of them lasting for less than a year. There are different types of mutual funds. MMMFs have short-term investment opportunities. This is perfect if...

Target date funds are mutual funds utilized by those planning for their retirement. With target date funds (i.e. life-cycle or age-based funds) the asset mix which consists of stocks, bonds, and cash equivalents becomes more moderate as the target date approaches . That is because as retirement...

If you are trying to invest for the future but want to minimizing your risk while trying to maximize the chances of a return on an investment, then a constant dollar plan strategy could be an option for you. A constant dollar plan investment strategy is when securities (typically mutual funds )...

For all the things you know that are important you know that saving for retirement is something very important for your financial future - and that is why you probably have a retirement portfolio with a large variety of investment options, including holdings in a diversified investment company ;...

No-load mutual funds have been the center of a lot of discussions as investors try to decide which is best for them . Because they allow individuals to invest with no fees from advisors or brokers , investors really enjoy the perks of cutting out the middleman. However, some of the funds are...

Tax-managed mutual funds are funds that are said to relieve investors of the insurmountable taxes they have to pay as a result of capital gains distributions given to shareholders . This practice has resulted in happier investors as they get to hold on to more of the money they intend to invest....

Capital gains tax has long been known as one of the major drawbacks of those who have made money on an investment; however, investors are finding ways to avoid these expensive taxes . Let's look at what a few of those ways are:

Have a small income . This is surely not a favorite of the person...