Outline
          The Investment Company Industry
            Open-End Investment Companies
            Closed-End Investment Companies
            Regulation
            Fees
          Selecting a Mutual Fund
            Rationale
            Eligibility
            Interpreting Past Performance
            Types of Funds
                                                  2
                         Outline
               
                  Information Sources
                   Company Information
                   Commercial Services
                                                3
           The Investment Company Industry
               
                 The investment company industry
                  is a significant portion of the 
                  financial landscape in the United 
                  States.
     The automatic diversification and professional
       management provided by mutual funds make 
       it simple for even the smallest investor to 
       participate in our capital markets.
     There are two types of investment companies:
       open-end funds and closed-end funds.
                                                   4
           Open-End Investment Companies
    An open-end investment company is 
      commonly called a mutual fund.
    A mutual fund has no limit on the size of the 
      fund or the number of shares outstanding.
    The value of a mutual fund share is called its 
      net asset value.
    Mutual fund shares are not sold in the 
      traditional sense. Instead, they are redeemed 
      by the fund management.
                                                5
            Open-End Investment Companies
     
       Upon opening an account with a mutual fund, the 
       investor must select from among several 
       options.
     
       Some common options are :
        - automatic reinvestment option
        - automatic monthly investment plan
        - limit order option
        - periodic payment option
        - telephone redemption option
        - switching option
                                                  6