MUTUAL FUNDS
You must have heard of mutual funds on TV Advertisements but ever wondered what are they?
Mutual funds are a remarkably good way to invest in stocks,Bonds & other securities. These are a accumulation of stocks and bonds.
Investors can make money from DIVIDENDS on stocks and INTEREST on bonds and capital gains on selling securities (if price has increased thereof).
Investors can make money from DIVIDENDS on stocks and INTEREST on bonds and capital gains on selling securities (if price has increased thereof).
ADVANTAGES:
1.) Mutual funds facilitates professional management of one's hard dough.
2.) Investor's risk diverges due to owning shares in a mutual fund instead of owning individual stocks/bonds.
3.) Mutual funds let investor to convert it into liquid any time.
4.) Acquiring mutual funds is as simple as ABC, almost all banks and even some companies have their own stream of mutual funds.
1.) Mutual funds facilitates professional management of one's hard dough.
2.) Investor's risk diverges due to owning shares in a mutual fund instead of owning individual stocks/bonds.
3.) Mutual funds let investor to convert it into liquid any time.
4.) Acquiring mutual funds is as simple as ABC, almost all banks and even some companies have their own stream of mutual funds.
DISADVANTAGES:
1.) Mutual funds are at times thought out to be a pricey affair as selling of securities, provokes capital gains tax.
2.) Shareholder transaction costs and advisory fees involved are sky-high.
1.) Mutual funds are at times thought out to be a pricey affair as selling of securities, provokes capital gains tax.
2.) Shareholder transaction costs and advisory fees involved are sky-high.
POSTED BY,
GARV AHLUWALIA
EDITOR AT CHARTERED BLOOD
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