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The Table of Contents and Chapter One are shown below............

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Table of Contents

Chapter 1

Mutual Fund Shock 11

Chapter 2

Why Are There Over 8,000 Mutual

Funds to Choose From? 13

Bull Market in Stocks · Global

Competition and 401(K)'s · Anticipated

Demise of the Social Security System

· Baby Boomers · Lack of Investor

Knowledge · Low Barriers to Entry

· Future of Mutual Funds

Chapter 3

Basics of Mutual Funds 31

Best Type of Investment Asset · Are

Common Stocks Too Risky?

· Diversification · A Professionally

Managed Mutual Fund is Born

· Continued Popularity of Mutual Funds

Chapter 4

Mutual Fund Performance 47

How To Know Your Mutual Fund is

the Best · Fund Comparisons

Chapter 5

Index Funds 51

Mutual Funds not Consistent · Fund

Performance · Cost Disadvantage

· Efficient Market Theory · Monkeys and

Dart Boards · Wilshire 5,000 and S&P 500

Studies · An Index Fund is Born · Indexing

Grows · The Beardstown Ladies Controversy

Chapter 6

Index Fund Explosion 79

Malkiel's Book · Bogle's Influence

· Personal Finance Magazines · The

Internet

Chapter 7

Why Haven't Index Funds Taken Over? 83

Indexed Stock Funds Not Available until

1976 · Lack of Education About Investing

· No Financial Incentives to Sell Indexed Stock

Funds · Mutual Fund Companies · Indexed

Stock Funds Not Available to 401(K)

Investors · Indexing Not Exciting Enough

· Indexing Concept Hard to Believe

· Glorification of Professional Mutual

Fund Managers · Bull Market · Just

Settling for Average Results · No Publicity

from Personal Finance Magazines

Chapter 8

Global Indexing 93

Global Markets · Overseas Investment

Opportunities · A Foreign Index Fund is

Born · Closing Thoughts

Chapter 9

Available Index Funds 101

Chart of Available Index Funds

Chapter 10

Selecting Common Stock Index Funds 105

U.S. Common Stock Index Funds · Foreign

Common Stock Index Funds · Japan

· Cost Considerations · Other

Considerations

Chapter 11

Indexing Into Retirement 111

Getting Ready for Retirement · Retirement

Strategy · Asset Allocation · Asset Allocation

and Investor's Age · Using Indexing to

Implement Asset Allocation

Chapter 12

Still Think Your "Gunslinger" Can

Beat the Market? 121

Have You Compared the Professional's

Performance to the Market's Averages?

· The Professional Manager Faces a Heavy

Cost Disadvantage · The Professional

Manager Faces Tax Disadvantages Also

· Very Few Professionals Have Consistently

Beat the Markets · Going Against The Advice

of the Number One Personal Finance Magazine

· Compromise Strategy

Chapter 13

Activity Checklist 127

Chapter 14

Summary 129

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Chapter 1

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Mutual Fund Shock

Many people only buy a new car every five or ten years. When these people walk onto the car dealer's lot after being out of the new car market for many years, they are shocked by how much the cost of new cars has increased!

This same type of "shock" is experienced by new mutual fund investors. A new mutual fund investor will often decide to investigate mutual fund investment by turning to the financial section of a newspaper. The new mutual fund investor is shocked to discover there are over 8,000 different mutual funds to choose from!! The new mutual fund investor is often completely overwhelmed about how to begin to choose from 8,000 different mutual funds.

A new investor often only has enough money to invest in one mutual fund. Once new investors learn they must pick only one mutual fund out of more than 8,000 funds, they quickly start to feel like players in a Russian roulette game!!

This book will help new investors make sense of the mutual fund industry. New investors will learn why there are so many mutual funds available. This book will also explain the basics of mutual funds and common stock index mutual funds. The new investor will learn how to avoid having to sort through 8,000+ mutual funds by using a few common stock index funds to achieve their financial goals.

If you already invest in mutual funds, this book will show you how to beat 80% of the funds every year by using common stock indexed funds. You will learn how to evaluate the performance of your professionally managed mutual fund. You will learn how to determine if your professional mutual fund manager is really doing a good job with your investments.

The following chapter will simplify your financial life and let you achieve better results than 80% of the professional mutual fund managers!!

Most investors, both institutional and individual, will find that the best way to own common stocks is through an index fund that charges minimal fees. Those following this path are sure to beat the net results (after fees and expenses) delivered by the great majority of investment professionals. -- Warren Buffett, in his 1996 Annual Berkshire Hathaway Report

Dale C. Maley - President - Artephius Publishing 1