money guidance and how to get rich_268

_{A money market fund is a mutual fund that buys securities such as}

_{Treasury bills, short-term commercial debt, and certificates of deposit.}

_{It sticks to short-term, high-quality securities and is relatively safe and}

_{rates, but they fall dramatically short of the stock market's historical}

_{average return of 11% per year. They're ill suited for long-term savings,}

_{but they're great for short-term investments, such as for money}

_{you'll need in the near future.}

_{Just about. NAV stands for "net asset value." To understand what it is,}

_{know that mutual fund prices don't fluctuate during the day. Since}

_{funds are composed of many different securities, fund companies wait}

_{until the end of trading each day, and then they add up the current}

_{market value of all their holdings. They then subtract the fund's expenses}

_{for the day, such as commissions paid. The result is divided by}

_{the number of shares of the fund that exist — and that's the NAV.}

_{A prospectus is a booklet that describes a mutual fund's goals, fees,}

_{risks, policies, and investment style. It should show you how well the}

_{fund has performed in the past and how much money it will charge}

_{you in fees, while giving you an idea of how it will invest your money.}

_{If you're thinking of buying shares of a mutual fund, you should obtain}

_{and read its latest prospectus. Mutual funds are required to provide}

_{prospectuses to help investors make informed decisions. You}

_{can request them from the mutual fund company. Many such companies}

_{make prospectuses available electronically on their websites.}