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Part: 1 Background > Understanding Mutual Funds: The Nitty-gritty Details

Chapter 3. Understanding Mutual Funds: The Nitty-gritty Details

This chapter reviews the basic terminology and mechanics of mutual funds. I refer to these items in later chapters, so it is worthwhile to review the basic details now. For example, it is essential to know the difference between a money market fund and an equity fund, both of which are mutual funds. Also, it is important to understand the difference between the sales charge on a fund and the expense ratio that includes the management fee.


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