A mutual fund is a pool of securities professionally managed to
meet a common objective.
instant diversification, low minimum, professional management
for small sums, ideal for dollar-cost-averaging.
Money market fund
A mutual fund investing in short term money market instruments,
such as certificates of deposit, treasury bills and commercial
The fundís net asset value is usually $1 a share, and its
interest rate goes up or down.
Most money market funds offer check-writing privileges.
Municipal bond fund
A mutual fund that invests in municipal bonds.
Municipal bond funds are popular with investors who want to
reduce their tax burden, because interest on municipal
obligations is often free of federal income taxes and/or state
and local income taxes.