The most dynamic institutional investors today are pension funds and mutual funds. Pension funds are a relatively recent phenomenon, which emerged ... the early 1950s.
Pension funds are retirement plans funded ... corporations or government agencies for their workers. Pension funds pool the contributions of employees and invest these funds ... various types of financial assets, such as corporate securities or real estate. Pension funds are often managed ... bank trust departments and life insurance companies.
Mutual funds have been even more impressive than pension funds.
Mutual funds are corporations which accept money ... savers and then use these funds to buy stocks, long-term debt instruments issued ... businesses or government units. These organizations pool funds and thus reduce risks ... diversification. They also achieve economies ... scale, which lower the costs of analyzing securities, managing portfolios, and buying and selling securities. Different funds are designed to meet the objectives of different types of savers. Hence, there are bond funds ... those who desire safety, stock funds ... savers who are willing to accept significant risks ... the hope of higher returns, and still other funds that are used as interest-bearing checking accounts (the money market funds). There are hundreds ... different mutual funds ... dozens of different goals and purposes.
Words you may need:
mutual fundsâçàèìíûåôîíäû
real estateíåäâèæèìîñòü
to accept risksïðèíèìàòüðèñêè
money market (mutual) fundâçàèìíûé ôîíä äåíåæíîãî ðûíêà
interest-bearing checking accountòåêóùèé ñ÷åò, íà êîòîðûé íà÷èñëÿåòñÿ ïðîöåíò