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Investing General discussions on investing and investments: shares, bonds, commodities, forex, and funds.

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Old 08-26-2008, 11:28 AM
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Join Date: May 2008
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Cool Why prefer Mutual Fund Investments

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 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.
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Old 08-27-2008, 12:27 PM
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Join Date: Aug 2008
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Default Re: Why prefer Mutual Fund Investments

Hi! What you're talking about may be true. But interest rate is rather low and you have to wait for it for quite a long time, haven't you?
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Old 09-05-2008, 03:25 PM
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Join Date: Aug 2008
Location: Little Rock, AR
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Default Re: Why prefer Mutual Fund Investments

Quote:
Originally Posted by Albert Kerr View Post
Hi! What you're talking about may be true. But interest rate is rather low and you have to wait for it for quite a long time, haven't you?
It's really so. Since when you invest with some large investing company your profit is bigger as well because they have a large capital and an opportunity to diversify investments.
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Old 09-14-2010, 08:55 AM
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Default Re: Why prefer Mutual Fund Investments

I think its a Safe investment.
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Old 09-14-2010, 03:00 PM
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Join Date: Sep 2010
Posts: 7
Default Re: Why prefer Mutual Fund Investments

Mutual funds can be a good investment but you really need to be articulate and ascertain who exactly you are dealing with.

I deal in securities, bonds, stocks etc and have been doing really well, but, when I say i have done well it reflects the leverages and percentages I have attained but in terms of money, I am not doing too great, because, the money in effect in not prolific.

I have and continue to talk to investors to invest in me and for me to trade their funds on the markets. In affect, I am managing their finances and trading on their behalf . I also have very good traders who I work with and share and exchange knowledge. We also, share market date we have gathered and analysed.

I have already been prasied by a couple of top traders who would like to work with me and have already told me that I will be very successful.

It takes taken me years of research to research the markets and the influences involved.

It's abolutely critial you get your market data right, if you don't you are destined for disaster. Many factors depend on market volatility and fluctuation, spanning from which month you trade, not only that, you have to also ascertain the current avents which is extremely difficult and then come to a conclusion.

You have to be very articualte and work diligently. The S&P 500 for me is the best platform to trade on. Trading in futures can be rewarding if you get market research right and then refine and implement it into your trading strategy.

fasar khan

skype: fasar.khan
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