Know Your Financial Instruments
Know Your Financial Instruments
Savings. Some income not spent is saved in the form of savings in the bank, as a reserve short-term funds.
Deposits. Similar services offered by savings banks, which have a certain period of time in which the money in it should not be drawn customers. Deposit interest rates are usually higher than regular savings.
Mutual funds. Containers and patterns of management of funds / capital for a set of investors to invest in investment instruments available in the Capital Market by buying mutual funds. These funds are then managed by the Investment Manager (MI) into the investment portfolio, whether it be stocks, bonds, money market or securities / other security.
There are four types of mutual funds:
* Money Market Mutual Fund: investment invested in debt securities with maturities of less than one year.
* Fixed Income Mutual Funds: at least 80% of managed funds (assets) is invested in debt securities.
* Mutual Fund Shares: at least 80% of managed funds in equity securities (shares in a capital market).
* Mixed mutual funds: mutual funds that have a comparison of the target asset allocation in stocks and fixed income securities that can not be categorized into three other mutual funds.