Many people favor mutual funds. Mutual fund comes in several flavors - stock mutual funds and bond mutual funds in general. Both types of funds range from high risk/agressive funds to low risk/passive funds (read more about these please).
Mutual funds had been criticized though. Firstly, fund managers will charge you fees every year whether the funds that they manage giving return or not. Secondly, you have to pay premium for every 'share' that you purchase at the very beginning, most of the time you can directly buy stocks or bond at the stock exchange cheaper!
However, mutual fund is an easy way to invest in stock and bond when you have limited capital and there is a hope that the fund manager will manage your investment honestly and smartly. We can say that:
Mutual funds had been criticized though. Firstly, fund managers will charge you fees every year whether the funds that they manage giving return or not. Secondly, you have to pay premium for every 'share' that you purchase at the very beginning, most of the time you can directly buy stocks or bond at the stock exchange cheaper!
However, mutual fund is an easy way to invest in stock and bond when you have limited capital and there is a hope that the fund manager will manage your investment honestly and smartly. We can say that:
"Some money can be made if you invest through mutual funds but more can be made if you invest in stocks and bonds directly and smartly!"
+ read more about mutual fund here: http://mutualfunds.about.com/
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