16 September, 2010

investing in mutual funds

A mutual fund is an investment scheme where a group of investors pool their money and hire a portfolio manager. The manager invests the pooled money in securities such as stocks, bonds, money market instruments and similar assets. The fund manager buy and sell stocks and securities according to the investment objectives stated in its prospectus.

Investing in mutual fund is a way for investors-like-me, who don’t have the resources or the time to buy individual stocks, to get a piece of the market.

But of course, there are advantages and disadvantages alike in mutual fund investing. Finding the right mutual fund company should not be considered lightly also.

The first step to mutual fund investing: prospectus. Start collecting and comparing - now.



Franc Ramon said...

I guess a mutual fund is ok if you are able to get a seasoned fund manager.

che said...

investors should also be informed of the ins and outs in investing in mutual funds. this is the role of portfolio managers, to inform the investors in such a way that they can understand it because if not, problems could arise at the end of this business relationship.

YANI said...

Yes to mutual fund. But one has to make sure that the one who is responsible for your funds are competitive and marketable enough.

Bev said...

my husband and I have been thinking about this few months ago. Up until now we are still confused as whether to venture in this investment or not. Think..think..think

Marie said...

oh there are many investments that I would like to try, I always Che because that's her cup of tea for advice when I plan to. :)

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