Here is a 70 second video that confirms what many of us have already found out by experience. You will know what I mean after you see the video. Presented is a race among equity mutual funds, bonds, a balanced fund, and mattress saving.
Equity Mutual Funds
Equity funds, which consist mainly of stock investments, are the most common type of mutual fund. Equity funds hold 50 percent of all amounts invested in mutual funds in the United States. Often equity funds focus investments on particular strategies and certain types of issuers.
Bonds are bought and traded mostly by institutions like pension funds, insurance companies and banks. Most individuals who want to own bonds do so through bond funds. Still, in the U.S., nearly ten percent of all bonds outstanding are held directly by households.
Balanced Funds invest in stocks for appreciation and bonds for income. The goal is to provide a regular income payment to the fund holder, while increasing its principal.
Thousands of Northern Rock savers found themselves walking away from branches last year with bags full of cash. Now that the money is safe at home, many of them are probably scratching their heads trying to work out where to put it now.