NextPrevious

Savings and Investments

Mutual Funds

Does size really matter when deciding what type of mutual fund to purchase?

Yes, size does matter. In each broad category, we have the choice of buying mutual funds that invest in small companies, which may have a higher potential return, but more risk. Medium sized companies may reduce the risk over time since they are not as small and are more established than small companies, but have the ability to generate profit growth over time. Large company stock funds may have fewer risks, as these are very established companies that have proven track records, dividends, and growth, and are thought to be less risky than small company funds.



Close

This is a web preview of the "The Handy Personal Finance Answer Book" app. Many features only work on your mobile device. If you like what you see, we hope you will consider buying. Get the App