What special fund features might help Damon achieve

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Problem - Damon's Dilemma: Common Stocks, Mutual Funds, or ETFs?

Damon Bellamy has worked in the management services division of Niche Consultants for the past five years. He currently earns an annual salary of about $120,000. At 33, he's still a bachelor and has accumulated about $100,000 in savings over the past few years. He keeps his savings in a money market account, where it earns about 3 percent interest. Damon wants to get "a bigger bang for his buck," so he has considered withdrawing $50,000 from his money market account and investing it in the stock market. He feels that such an investment can easily earn more than 3 percent. Naomi Ladd, a close friend, suggests that he invest in mutual fund shares. Damon has approached you, his broker, for advice.

What special fund features might help Damon achieve his investment objectives?

Reference no: EM132800662

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