A Mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and / or other securities. In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors.
There are many mutual funds in the market. While choosing a mutual fund, you need to remember that if the fund had yielded superlative returns in the past, there is no guarantee that it would continue to do so in the future. This is especially true of new or small funds. The other factors that can affect the performance of your investment significantly are:
Sales charges, fees and other expenses levied by the fund
* Taxes to be paid on receipt of distribution
* Duration of operation and size
* Risks and volatility
* Alterationsin the operations
1 comment:
Hi,
Nice article & I would also like to suggest that mutual funds store also provides the service for mutual fund investing with investment advisory services.
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