Mutual Funds

How do Mutual Funds work ?

Companies that market with Mutual Funds are investing in stocks with money of people that have joined mutual funds with their money.

How much money can I earn ?

This usualy depends how fast the point of the mutual funds is growing . This is usualy around 10-20% per year, there can also be negative balance or extreme good growing rate like 70%... So if you invest 1000$, you will have 1100$ to 1200$ maybe more maybe less... How can I calculate my earnings ?
You can calculate it like: M × n^Y . M= money invested
n= how many percents per year so if there are earnings around 20% you put 1.2 instead of n
Y=years you will have your money in Funds

Practical:
You have 1000$, you put it in Fund that grows 20% per year for 10 years.

After 10 years you will have: 1000$ × 1.2^10= 6191$
You can calculate your profit here !!!

What are the risks?

Usualy you aren't risking a lot as long as you are investing on long terms. There can be some jumps up and down but at the end you usualy get more out than you have invested.

Which Mutual funds are ambicious ?

My opinion is that amicious funds are eastern Europe funds, India funds, China, Japan... Technology and mines.

Which type of Mutual Funds are there ?

In general there are 3 different types of funds. Funds that invest in stocks, funds that invest in debenture and mixed funds.
Funds that invest in stocks in general bring you much more profit but they are a little bit more risky.

Mutual Funds Potfolio

To have a portfolio is very good, that way you can see all your profits, investments... Here is an example of portfolio I am using:
Print screen financna-tocka.si

Black line shows how much I have invested. You can see that line goes up and down in short terms but on long terms it goes higher and higher.
Resources
Stock Market Game