Risk associated with investments can be categorized as diversifi able risk and undiversifi able risk. This is one reason mutual funds are so popular—many investors’ money is pooled and numerous stocks are purchased. Some of the risk is reduced because you buy a piece of so many different companies. Undiversifiable risks are those over which you have no control, such as the risks.

1. Research Use an Internet search engine or look in the newspaper or magazine to fi nd descriptions of three mutual funds.

2. Think Critically Select one mutual fund of interest to you. Why did you select it?