Savings Accounts are made for people who want to store their money in a safe place over time. A very small percentage of interest is earned by those who used savings accounts.
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Certificates of Deposit are types of investment plans that are used for a set amount of time. They have a fixed interest rate and are a low risk option for those who want to invest.
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The process of Bond-Based Mutual Funds and Stock-Based Mutual Funds are very similar. A person invests their money with a group of people and give the pool to a professional. The professional then invests the pool of money based on what he/she believes will be the best option.
Bond-Based Mutual Funds focus on revenue, and have less of a risk than Stock-Based Mutual Funds. This type of mutual fund allows people to obtain another source of income.
Stock-Based Mutual Funds have a higher goal in providing long-term growth. This type of mutual fund, however, is of higher risk and is more prone to fluctuations in the investment value.
Bond-Based Mutual Funds focus on revenue, and have less of a risk than Stock-Based Mutual Funds. This type of mutual fund allows people to obtain another source of income.
Stock-Based Mutual Funds have a higher goal in providing long-term growth. This type of mutual fund, however, is of higher risk and is more prone to fluctuations in the investment value.
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Bonds are contracts created to repay borrowed money. These are usually issued by companies and creates financial security in return for a debt.
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Stocks are purchased by people who want to invest their money into a given company. These are one of the riskiest investments one can make. Investors must choose who they want to put money into, otherwise, they may lose money in the process.
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