This is the chapter 3 for my series Ways to Invest when you have $100,000? In chapter 3, I will share with you the first suggestion of balance ways to invest your $100,000. This is the part 2 for this Chapter and here is part 1 if you miss it out.

PS: What is balance ways? I think I should explain further the word “Balance” that I use here. Balance ways mean ways to invest your money under a balance rate between the returns and the risks of the investment. The risk is higher than the conservative ways that I share with you in my last chapter. However the returns are higher too.

Suggestion 1: Balanced Fund + Mutual Fund

Mutual Fund
Mutual Fund is one of the most popular investments that available on the market. If you don’t know how to invest your money, why don’t let somebody to invest for you. This is the simple theory for mutual fund. Anyway, below is an explain from About.com: ( I think expert can explain better than me )

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.

Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don”t have to figure out which stocks or bonds to buy). If you would like to know the history of mutual funds, click here.

By pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification.

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