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Index Funds are Your Friend - Every stock market or stock exchange offers indexed funds and these index funds are more beneficial to you as a new investor as they...

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Small Cap Mutual Funds

Most people invest in mutual funds to grow money for a specific purpose. You may want to buy a new car, put a child through college, or plan for your retirement. To understand how to make the best investment, you have to know a little about how the mutual fund industry works. There are all kinds of funds to choose from, such as income funds, growth funds, aggressive growth funds, mid caps, large caps and small cap mutual funds. You can also invest in blended funds, which could contain shares in real estate, energy, green energy, health care, utilities, technology and commodities.

One mutual fund investment company could handle hundreds of mutual funds. You as an investor would have to decide what type of fund would be best to fit into your financial goals. You might want to choose a small cap mutual fund over a larger one, if you have watched its performance over time. The shares of mutual funds are classified in different ways. For instance, a Class A mutual fund is a front load mutual fund, which means you could be charged anywhere from 3 percent to 6 percent sales charge, or commission for the company. If you purchase a Class B mutual fund, has no charges up front, but has a charge that will be there for the first 5 years, and if you were to sell the your share of the fund within the first 5 years, you would be charged a fee. Whether you have small cap mutual funds, mid cap, or large cap, it makes sense to do your homework before buying or selling mutual funds.

Most of the domestic mutual funds with diversified stocks are small cap mutual funds. Most small cap mutual funds perform quite well. Most investors think of large caps the best investment in a falling economy, but this year small caps are doing very well, while the larger caps aren't performing as well. More investors are beginning to see small cap funds as good investments. Some good small cap funds are Heartland Value Plus, Hancock Horizon Burkenroad, and Parnassus Small-Cap.

Small cap mutual funds are a good investment because the share prices are still reasonable. Once small cap mutual funds become recognized by Wall Street as preferred investments, the NAV (net asset value) will go up. Hopefully when you buy small cap mutual funds, you hope the NAV will be lower. Conversely, it would be natural to hope that the NAV would be higher when you decide to sell your funds. If you can buy into small cap mutual funds before their value increases on the market, you stand a chance for making capital gains if you sell when the price per unit goes up.

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Proof Of Concept – (Proof-of-concept) Referring to the types and applicability, reliability or evidence, verification, confirmation and corroboration, even substantiation, or resilience of data, fact etc. Also called POC, showing its usefulness and applications, features and possibilities, allowing to an extent no to low risk exposure and exploration, prospecting if...

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