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Just like stocks, mutual funds comes in many flavors, from low-risk index funds that track a well-known benchmark like the S&P 500 to spicier, high-risk funds that invest in super-small micro-cap companies. So while potential risk and reward in fund investing varies greatly depending on which type of fund you buy, in general, buying a mutual fund is less risky than buying shares of a single stock. This is simply because a mutual fund has greater diversification, or exposure to many companies, so even if one stock blows up, it shouldn't affect the rest of the portfolio too much. Of course, the flip side is that mutual funds won't typically double or triple in value in short periods of time the way a share of stock can! [link widoczny dla zalogowanych] Generally, interest is applied to the loan that is expected to be paid back at the time of repayment. The interest can range greatly depending on the institution, and what part of the world the person resides in. Some payday lending institutions perform a credit check and/or employment verification. These measures are taken in order to ensure that the borrower will be able to repay the loan. A: No. it is not necessary that all loans given to students with bad credit have a high rate of interest. Most of the loans that are designed for students with low credit scores are funded by the federal government. It is easy to repay these loans as the interest rate is low. However, if you consider taking loans from a private banking institution, the interest rate will be higher.
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