Understanding Mutual Funds

[Niyi Briggs]

Mutual funds is a situation where a group of individuals pools funds together and use those funds to invest in bonds, stock and other securities.

Think of it like a man that wants to buy a hose. He doesn't have money, so he talks to his friends to contribute money and they gather the money and go buy a house.

Just that in mutual funds, what is traded is bonds and stocks.

 

[arunima]

Mutual fund is a profitable investment. But it does involve mild to moderate risks. And one needs to understand it well before investing in it. There are many mutual fund options available in the market

 

[Magnus2022]

I have not invested in mutual bond but from speculations, it is definitely moderate risk investment. Most mutual fund are selected by professional investors for their clients which they receive some amount of percentage if the invest yield profit.

 

[arunima]

Even we ( husband and I ) have invested some money in Mutual fund..Our finance portfolio manager takes care of our investments and he keeps us in loop for all updates and consulting. So far the investment in mutual fund is going good. It does involve moderate risk. Most people invest in Mutual funds keeping long term gain in mind.

 

[Suba]

Mutual funds are a promising investment instrument, but we must learn about mutual funds before investing, especially the advantages and disadvantages. Some of the advantages of investing in mutual funds can be started with small capital, unlike investing in the stock market. But there are also disadvantages like you need at least 3 to four working days to turn your investment into money.

 

[SHAHID987]

We must have sound knowledge about it so we can get most out of it. I am involved in it very little as I just have bonds and usually I get some prizes.

 

[nomad]

Mutual Fund is an investment pool where you put your money and the manager will use your money to invest in different assets. This is one of the easiest ways to make an investment without worrying about market risks

 

[arunima]

Mutual Fund is an investment pool where you put your money and the manager will use your money to invest in different assets. This is one of the easiest ways to make an investment without worrying about market risks

When we invest in Mutual funds and read the documents, the thing is very much clearly written that " Mutual funds are subject to market risks". So, it is very clear that it is dependent on market risks. The money is invested in market only in different assets.
The risk involved is however not very high,, but mild to moderate.

 

[uptrendfinancialsignal]

Mutual fund is a very good business to try but the investigation must be carried out before you invest in it.

 

[Reedex]

Mutual fund is a very good business to try but the investigation must be carried out before you invest in it.

In as much as it is a very good investment it is always better to carry out thorough investigation before investing.

 

[arunima]

You have to explore and get some bit of knowledge before you choose to invest in any kind of scheme. It's your hard earned money and you should feel confident and comfortable before investing it. Don't go by word of mouth. Do your own personal research and investigation. Each one of us have different financial obligations and risk appetite. Our choice of investment should be based on that.

 

[jetsaints30]

Mutual funds is a situation where a group of individuals pools funds together and use those funds to invest in bonds, stock and other securities.

Think of it like a man that wants to buy a hose. He doesn't have money, so he talks to his friends to contribute money and they gather the money and go buy a house.

Just that in mutual funds, what is traded is bonds and stocks.

Makes sense to me! So it's like a group of friends pooling their money together to make a bigger investment. Only difference is theyre investing in bonds and stocks instead of a house.

 

[Hate2Wait]

I have plans to invest in Stocks but till now I'm unable to as I am planning to learn it first

 

[arunima]

I have plans to invest in Stocks but till now I'm unable to as I am planning to learn it first

I appreciate that. It's the best thing to do. One has to understand the investment well and feel comfortable before you venture into it. Investing some time beforehand to understand it well would save you from inconvenience and frustration later. It's your hard earned money and you should take all care about it and not take hasty decision.