Mutual Funds: A best professionally managed investment fund
Hey readers, today’s topic is very interesting because today we are going to talk about Mutual Funds. Now, in days everyone who had money wants to invest it in a manner that he get interested after a specific time. There are many ways to DE investment in money. Mutual fund is also an investment Funds like other.
So, In this article, we’re going to discuss the whole information about Mutual Funds.
Topics to be cover
1. Introduction of Mutual fund.
2. History of Mutual funds.
3. Advantages and disadvantages of mutual funds.
4. Myths about Mutual Funds.
So, let’s start with
1. Introduction of Mutual Fund
Mutual Funds are said to a source of investment. Mutual Funds can be defined as a professionally managed investment funds. It pools the money to purchase securities from most of the investors. The investors who are willing to purchase this kind of investment fund are might be an organization, institutional or retail investors.
2. History of Mutual Funds
Mutual Funds are firstly introduced in the year 1773-1774 from the Dutch republic. This year the Dutch Republic faced a huge financial crisis in its region. To come out from this crisis they planned a professionally managed investment policy called Mutual Funds. This policy will very helpful to them. This policy not only helps to recover the Dutch republic from the financial crisis but also helpful for making stability in its economy.
Secondly, it was introduced by the United States in the year of 1890. They also introduced is open up function for the first time and make it more relevant which was accepted by the whole world.
Advantages and Disadvantages of Mutual Funds.
1. Dividing funds
In Mutual Funds, your diversification might be increase. It also decreases the risk and that’s why it is said to be one of the biggest
Advantages of Mutual Funds.
2. Government interruption
The policy of mutual funds is governed by the government. It assures the policyholder from frauds and scams.
Mutual fund provides you the daily liquidity service. This facility makes it unique because in investment the liquidity percentage is might be low but in mutual funds, you can enjoy the everyday trading facility.
1. High cost
Mutual funds are the professionally managed funds. The work of managing these funds is done by its professionals and they charge fees to its holder. That’s why it might be very costly.
2. Less control
Mutual funds are subject to market risk here you earn a profit or suffers loss is totally depends on the market position. In an easy way, we can say that you are not assured to gain profit or loss.
So, here we saw most of the advantages and disadvantages of Mutual Funds.
Now, we’re going to discuss the current stage of mutual funds in the whole world.
Myths about Mutual Funds
Many of the people’s having Myths in their mind the purchase of mutual funds is equal to taking risk of your money. It is not a true statement because mutual funds required lots of patience and regularity in it. If a person can able to de this mutual funds becomes a profitable investment for him.
So, here we see all the related information about Mutual Fund.
Hope you like.