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Equities - We offer a variety of reports and commentaries from our own award-winning analysts as well as from third-

party independent research providers.

Mutual Funds - Smith Barney Mutual Funds, managed by Smith Barney Asset Management, a part of Citigroup Asset
Management*, provides a broad selection of funds to best suit your investment goals.

Annuities - Annuities offer a wide array of tax-deferred portfolios with the potential to increase your pool of retirement
assets and to help provide for your loved ones.

Fixed Income - We offer a vast selection of Fixed Income products. Whether you are looking for Municipal Bonds or
Government Securities, our Fixed Income group can help.

Futures - Citigroup Global Markets Inc. is one of the largest futures firms in the world and is dedicated to expanding its
role within the futures industry. Our expertise ranges from execution and clearing services, to research, hedging
services, asset management and custom-tailored structured products.

Unit Investment Trust - These diversified, transparent portfolios of stocks or bonds are designed for the "buy and hold"
investor. Portfolios can be constructed around quantitative strategies, investment themes or areas of financial markets
with attractive investment opportunities.

Foreign Exchange - The Smith Barney/Citibank Foreign Exchange team provides clients with virtually unmatched
access to the world currency markets. We are committed to understanding the foreign currency needs of both
individuals and corporations.

Stock shares that represent ownership of a corporation. Included in this category are publicly
traded common stocks, rights, warrants, convertible securities and American Depository

Definitions of global equities on the Web:

• Stocks purchased from companies all over the world, including the Unites States. Global
equities can also expose you to foreign currency risk.

Definitions of flexible equities on the Web:

• A mutual fund whose holdings can vary between a preponderance of stocks or bonds,
depending on market conditions. Flexible funds seek to take advantage of changing
market conditions.

Definitions of blue chip equities on the Web:

• Ownership of stock in a company which is generally large and of very high quality

Definitions of precious metals equities on the Web:

• Mutual fund investing primarily in stocks of companies who mine precious metals, such
as gold, silver, platinum, etc. The stock prices of these companies can also reflect the
rising or falling values of the precious metals that the company mines. Participating
Preferred Stock allows its owners to share in profits beyond the declared dividend.
Convertible preferred stock allows the owner to exchange this stock for a number of
common shares. ...

Definitions of sector equities on the Web:

• Equities purchased from companies belonging to a specific sector within an industry,
such as airline or electronic stocks.

Web definitions for Mutual Funds

These are open-end funds that are not listed for trading on a stock exchange and are
issued by companies which use their capital to invest in other companies. Mutual funds
sell their own new shares to investors and buy back their old shares upon redemption.
Capitalization is not fixed and normally shares are issued as people want them.

What is a Mutual Fund?

From Dustin Woodard,
Your Guide to Mutual Funds.
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Guide Rating -
Far too often investment writers incorrectly assume that their readers understand what a
mutual fund is. Read this article as an absolute starting point for learning about mutual
funds. Then we can start tackling the tougher mutual fund subjects in a process that will
make you a smarter investor.

Getting Started

Before I dive into the definition of a mutual fund, it is important that you have a basic
understanding of stocks and bonds. There are certainly more variations of each than I will
cover here, but I don't want to confuse you, so I will keep it simple.

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Stocks represent shares of ownership in a public company. Examples of public companies

include IBM, Microsoft, Ford, Coca-Cola, and General Mills. Stocks are the most
common ownership investment traded on the market.

Bonds are basically a chance for you to lend your money to the government or a
company. You can receive interest and your principle back over predetermined amounts
of time. Bonds are the most common lending investment traded on the market.

There are many other types of investments other than stocks and bonds (including
annuities, real estate, and precious metals), but the majority of mutual funds invest in
stocks and/or bonds.

Mutual Funds

A mutual fund is simply a financial intermediary that allows a group of investors to pool
their money together with a predetermined investment objective. The mutual fund will
have a fund manager who is responsible for investing the pooled money into specific
securities (usually stocks or bonds). When you invest in a mutual fund, you are buying
shares (or portions) of the mutual fund and become a shareholder of the fund.

Mutual funds are one of the best investments ever created because they are very cost
efficient and very easy to invest in (you don't have to figure out which stocks or bonds to
buy). If you would like to know the history of mutual funds, click here.

By pooling money together in a mutual fund, investors can purchase stocks or bonds with
much lower trading costs than if they tried to do it on their own. But the biggest
advantage to mutual funds is diversification.


Diversification is the idea of spreading out your money across many different types of
investments. When one investment is down another might be up. Choosing to diversify
your investment holdings reduces your risk tremendously.

The most basic level of diversification is to buy multiple stocks rather than just one stock.
Mutual funds are set up to buy many stocks (even hundreds or thousands). Beyond that,
you can diversify even more by purchasing different kinds of stocks, then adding bonds,
then international, and so on. It could take you weeks to buy all these investments, but if
you purchased a few mutual funds you could be done in a few hours because mutual
funds automatically diversify in a predetermined category of investments (i.e. - growth
companies, low-grade corporate bonds, international small companies). On the next page,
I clearly explain how diversification works using a "Wheel of Fortune" concept

Mutual Fund Wheel of Fortune

Imagine you have a two wheels in front of you, each with different possible outcomes -
kind of like the Wheel of Fortune Game show, only each pie piece represents a different
return on your money.
Your task is to choose which wheel you would like to spin and you will have to live with
the randomly produced result listed on the wheel.

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One Stock- No Diversification

The first wheel represents purchasing a single stock. If you choose to spin it, there is
basically a 50-50 chance that you will either make money or lose money. It is like
flipping a coin. And among the winning and losing wheel pieces there is a great range of
possible outcomes - from a loss of 50% to a gain of 50%.

The second wheel represents purchasing a mutual fund that holds many stocks. This time
there is a better chance that you will make money because there are only two pieces that
represent a loss. The range is a bit smaller - from a loss of 11% to a gain of of 35%.

Many Stocks (Mutual Fund)- Diversification

Take a close look at the wheels and think about which wheel you would rather spin. And
remember, this is not a game. This is your hard earned cash that you are investing!
Choose between:
- Wheel 1: One Stock- No Diversification
- Wheel 2: Many Stocks (Mutual Fund)- Diversification

The second wheel should be the obvious choice. By purchasing many stocks you have
reduced your risk and increased your chance of a winning spin. As I mentioned earlier,
you can go beyond this level of diversification by purchasing other mutual funds with
different objectives.

To better understand mutual funds, it is best to look at the different categories of mutual
funds. Follow this link to learn about your mutual fund choices: Different Kinds of
Mutual Funds.

The best way to force yourself to learn more about mutual funds is to take my Mutual
Funds 101 Email Course.