View Full Version : Why prefer Mutual Fund Investments


franklin001
People basically make an investment, to earn money in the longer run. It is usually said that “One time investment should be a life long asset”. So when the investment part is being made it is extremely important to know where your money is going. No investment can be exactly termed as “safe” or “secured” in the exact sense, but that shouldn’t deter the prospects on gaining in on wealth. Mutual Fund Investments (http://www.franklintempletonindia.com/) has always proved beneficial in amassing life long benefits financially.

A Mutual Fund is a channelised financial hub, usually governed by a third party that permits a group of investors to invest their money together with an objective. The mutual fund basically has a fund manager who undertakes the responsibility of investing the gathered amount into specific securities such as bonds and stocks. When you invest in a mutual fund, you basically buy portions or shares of that particular fund and accordingly you are entitled to become a shareholder. Mutual Fund Investments are considered to be the most cost-effective investment and are highly popular due to its diversification.

Diversification is the art of bi-furcating your financial investments and investing in various schemes such that when one investment is down you can always bank on the other for your dividends. The basic level of diversification is to buy multiple stocks rather than just one stock. Now to the promotional offers. Look it is very obvious that anyone who runs a business will definitely promote it aggressively and claim it to be the best. But there is a statement that is made after a promotion that reads "Mutual Funds Investments are subjected to market risks, kindly read the offer document before investing". The performance or output of a fund anyone invests in depends on the psychology of the fund manager. Different funds from various fund houses may perform differently because, though they have the same aim, there style of operation and priority levels are different. So, given a choice always choose a fund with a good and consistent track record. Always do some amounts of market research and a bit of discussion with associates who are into the investing part, if possible hire a professional so that he can guide you with the investments. The rest will be fine.

For Newbies, prior to investing, you should be having an Idea as to what stocks, funds and shares are and why are they invested upon. If you are still unclear, take up the help of a CA (Chartered accountant) or a financial adviser. Clear your basics first. Secondly the performance or output of a fund/stock anyone invests in, depends on the psychology of the fund manager. So, given a choice always choose the ones with a good and consistent track record. Always remember investments are made to garner good dividends, so be sure where ever you are investing, the dividends should come from. Even if the stock you are investing upon provides you slow but secured dividends you should go for it. There are many stocks in the market that provides you with high capital gains, but then they are extremely risky. So you being an amateur should try avoiding that. Learn the game first and then play it.

Jessica08
Thanks for the information. It was very thorough... So tell me why you think a mutual fund would be a better choice than an ETF? I still would pick and ETF over an MF.

samlawrence
Thanks for sharing the information.I feel that earning only is not sufficient you should make some investments also to secure the future.There are lots of ways to make an investment.Actually i have a keen interest in mutual fund investments. I have already invested in mutual funds. It is the most reliable way of investing the money. If anyone really interested in investing in mutual funds can try it.There are a no. of websites that provide newsletters and services for investment professionals and individual investors to discover best mutual fund managers and mutual funds for them. I use fundmojo.com myself. It has helped me to achieve private equity return without hefty fees. Try fundmojo.com yourself.



http://www.fundmojo.com

franklin001
Thanks for sharing the information.I feel that earning only is not sufficient you should make some investments also to secure the future.There are lots of ways to make an investment.Actually i have a keen interest in mutual fund investments. I have already invested in mutual funds. It is the most reliable way of investing the money. If anyone really interested in investing in mutual funds can try it.There are a no. of websites that provide newsletters and services for investment professionals and individual investors to discover best mutual fund managers and mutual funds for them. I use fundmojo.com myself. It has helped me to achieve private equity return without hefty fees. Try fundmojo.com yourself.



http://www.fundmojo.com (http://www.fundmojo.com/)
Hey hi sam. Nice to know that you are really interested in investing in Mutual Funds. Always remember that Mutual Fund investments are made for long term capital gains. The investment involves a lot of diversification and bifurcation of finances. To read in detail click

Dingobiscuit
I think this is another forum first, "site-pushers" flim-flamming each other!

BlankenshipFP
This may never end!

youbetcha1018
Most of the major money/finance magazines every few months publish a list of best performing mutual funds in different categories (Growth, small-cap, international, value, and 'sector' funds: health care, banks, precious metals, etc). They usually show one year, three year, five year and ten year performance history and the minimum initial investment for mutual funds, as well as whether it is a 'load' or no load. Of course past performance is not a guaranteed predictor of future performance, as their brochures state, but it is certainly a good starting place.