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Don’t Make Me Say I Told You So 123

economic conditions, and find investment opportunities that
best meet the objectives of the fund and its investors.

Let’s look at a few ways to invest in individual stocks that

provide diversification and remove the need to try to pick
individual stocks for your portfolio.

Mutual Funds

A convenient way to own stocks is by investing in a mutual fund.

Stock mutual funds are the most common way that individual
investors buy stocks for their investment portfolios. Mutual
funds can invest in companies of different sizes and across a

range of industries. The types of stocks in which a fund invests

are determined by the objective that the fund seeks to achieve.
The objective of the stock fund you choose should correspond
to your financial goals and needs. Just like individual stocks,

different mutual funds offer varying degrees of income and

return-potential, as well as different levels of risk.

Mutual funds have a stated objective, which describes the

goal for that fund. Some mutual fund objectives are:

► Income: Focuses on generating dividend or interest

income.

Chapter 3: You Must Have Growth In Your Portfolio