Everyone has their interests and goals in life. With the world turning into a globalized one, you might be wondering what are the key steps to take when it comes to investing in your future. This blog article will address whether investing in mutual funds is worth it or not, by explaining its meaning and what are its types, so that you can make your decision.
What is Mutual Fund?
Mutual Fund is a term that refers to pooled funds that are invested either by a company or by an individual. Most of the funds are managed by mutual fund companies, and some are managed directly by the public. Mutual fund companies evaluate the potential risks and rewards for investing in Mutual Funds and decide how much money each investor should contribute based on their risk tolerance.
The fund manager will invest the money you contribute by investing in stocks, bonds, and other financial instruments. These investments are made to earn a high return on investment to cover your costs and hopefully yield a profit for all investors. The investor who initially puts up the money cannot trade the mutual fund’s portfolio without paying an additional fee.
Types of Mutual Fund you must know :
Mutual funds are generally divided into five categories, which are further subdivided based on their nature/purpose.
- Organization structure
- Portfolio management
- Investment goals
- Asset class
Based on "Organization Structure"
Based on "Portfolio management"
Based on "Investment Goals"
Based on "Solution Oriented"
Based on "Asset Class"
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