Make Money on Wall Street and Main Street

An Adventurous way of making money in the bank is through the purchasing of money making funds - stocks, bonds, and mutual funds (Mutual Funds are technically known as the open end investment company.)nnnEach Investment Company must state its objective whether it be to preserve principle so its purchasing power keeps up or beats inflation. The investment company might have as its objective to speculate in new companies with great upside potential for growth, while others invest in blue chip common stocks and high grade government bonds. Whatever their objective is it must have its mission statement expressed and the company can not later change its mission in its mutual fund.nnnOpen End Investment Companies and Closed End Investment Companies are the two types of investment companies. With Open End Investment Companies or Mutual Funds, the shares of their fund are available for sale or purchase at all times and the price is usually valued after the close of the market each day. Closed End Investment Companies sell their shares over the counter and the purchase price is based strictly on the principle of supply and demand. Open End Investment Companies are much more prevalent and you can buy mutual funds at all types of Financial Institutions.nnnMutual funds have a mark up since it costs the company money to get shares sold. This surcharge is known as a loading charge. Some funds have no loading charges. With the funds that do add loading charges, some you pay at the beginning and they are known as front end funds, and with other you pay when you sell and they are known as back-end funds. There are three major ways of buying mutual funds. With the regular account you purchase a stated amount such as $10,000. Secondly there is a voluntary accumulation plan where you make additional purchases whenever you feel the need to increase your mutual fund. Last is the Contractual Plan or Dollar-Costs-Averaging where you agree nto put in a set amount monthly or quarterly.nnn Unlike the Money Market Savings Account, your money making funds are not insured by Federal Deposit Insurance Fund or National Credit Union Share Insurance Fund. They may be invested in real estate, mortgages (Fannie Maes), Government Bonds, Munis (City or Municipal Bonds), Corporate Bonds, Junk Bonds, and InternationalnCompanies, Other Countries' Government Bonds, in Blue Chip Common Stocks or Preferred Stocks, only in Stocks, only in bonds, mixed stock and bond funds or such diversified funds as growth and income stocks where not only is the Price/Earnings Ratio is increasing, but the stocks in the fund pay nice dividends. Some funds invest in nSmall Caps (Small Companies), some only in mid-caps ( medium size companies) and some funds invest only in Fortune 500 Companies. So not only does Money Market Savings Account add to the bottom line of your money in the bank, but perhaps even more so do money making funds most often purchased in the form of mutual funds.