Mutual Funds

Mutual funds pool the funds of many investors to pursue common investment goals like aggressive growth, conservative growth, income, or combined growth and income. They allow you to invest relatively small amounts (typically $1,000 for the first investment and as little as $50 for subsequent investments). Mutual funds offer the benefit of professional management and diversification among a variety of stocks and/or bonds. Today there are more than 7,000 mutual funds to choose from.

If your child is young, aggressive growth funds might be your best choice. Historically, the stocks of small companies have outperformed all other asset classes. (Of course, past performance doesn't guarantee future success.) The more time you have before you need the money, the better aggressive growth is likely to work for you.

Mutual funds are offered by prospectus only. The prospectus provides complete information, including charges and expenses. Before investing in any mutual fund, read its prospectus carefully.

For information on how to choose mutual funds to fund your child's or grandchild's college education, click here to find the MidSouth First office nearest you.

back to top

Zero-Coupon Treasury Bonds

Zero-coupon bonds work like U.S. Savings Bonds: you buy them at a deep discount and receive the face value at maturity. Most zero-coupon Treasury bonds (often called "zeros") are available with a minimum $1,000 face value. They are backed by the full faith and credit of the United States and are exempt from state and local income tax. At current rates, a $10,000 investment can grow to approximately $20,000 in twelve years.*

* Based on yield to maturity at current rates as of 09/26/00. Prices and yields are subject to availability. Zero-coupon Treasury bonds sold prior to maturity may be worth more or less than their original cost, and their prices vary more with interest-rate movements than with other bonds of similar maturity. Interest income is subject to Federal ordinary-income tax each year, although the investor does not receive it until maturity.

For information on how to choose mutual funds to fund your child's or grandchild's college education, click here to find the MidSouth First office nearest you.

back to top


College Financial Aid
FinAid, The Financial Aid Information Page
FinAid offers a wide range of resources. It's well worth a visit on the strength of one of these alone: FastWEB (Financial Aid Search Through the WEB), a database that uses an online questionnaire to match your needs to more than 180,000 private-sector sources of aid. FinAid is maintained by Mark Kantrowitz, author of The Prentice-Hall Guide to Scholarships and Fellowships for Math and Science Students, and is sponsored by the National Association of Student Financial Aid Administrators.

back to top