Mutual Funds in America

The first investment trust (now called mutual fund) began in the Netherlands in the early 1800s. The first in the U.S. was the New York Stock Trust, which started in 1889. Since Boston was the economic center of the nation until the turn of the century, the majority of funds started there—Fidelity, Pioneer and Putnum Fund, to name a few. A fund that was comprised of both stocks and bonds (the Wellington Fund) started in 1928 and is still part of Vanguard. As the 20's crashed to a close, there were 10 mutual funds in the nation.

The Sixties saw the growth in aggressive (high risk) funds that were labeled, in the vernacular of the times, "hot-shot" or "go-go" funds. They were sexy and fast, there were a hundred of them by the late Sixties and a lot of people dumped a lot of money in them until the bearish times of 1969 freaked everybody out: investors yanked out their money and have been kicking themselves ever since, because some funds increased in value by more than 9,000%.

Until this time, people had been paying sales commissions on their funds. In the '70s, no-load funds were invented, and the biggest today, Vanguard Funds, was founded in 1977. At the end of the Sixties, there were nearly 250 different mutual funds: today, they number over 6,000. But here's the thing: the last time a mutual fund went bankrupt was 1940. And mutual funds often outperform the stock market.

Bookmark this page

Email this page to a friend

How to stick to a household budget
and have extra
money for investing

1. Customize your budget with your current needs, wants and future goals in mind.

2. Try to think if your budgeting plan as a "spending" plan rather than penny pitching.

3. Sit down and rationally discuss budget goals and spending limits with your spouse. You are bound to disagree somethere, but it important to take the time to find common ground.

Stocks & Investing Advice

	Stock Market Information
	Stock Indexes
	Mutual Funds Investing
	IRA Accounts
	401K Retirement Plans
	College Education Funding
	Stock Market History
	Investment Fraud
	Investing Terms
	Loan Payment Calculator
	Return Home

Stocks Investing