Buy Now
Main Colors:

Mutual Funds

Image

Mutual Fund

A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds. Each share represents an investor’s part ownership in the fund and the income it generates.

DOWNLOAD BROCHURES

Why do people buy mutual funds?

Professional Management. The fund managers do the research for you. They select the securities and monitor the performance. Diversification or “Don’t put all your eggs in one basket.” Mutual funds typically invest in a range of companies and industries. This helps to lower your risk if one company fails. Affordability. Most mutual funds set a relatively low dollar amount for initial investment and subsequent purchases. Liquidity. Mutual fund investors can easily redeem their shares at any time, for the current net asset value (NAV) plus any redemption fees.

What types of mutual funds are there?

Money market funds have relatively low risks. By law, they can invest only in certain high-quality, short-term investments issued by U.S. corporations, and federal, state and local governments. Bond funds have higher risks than money market funds because they typically aim to produce higher returns. Because there are many different types of bonds, the risks and rewards of bond funds can vary dramatically. Stock funds invest in corporate stocks. Not all stock funds are the same. Some examples are: Growth funds focus on stocks that may not pay a regular dividend but have potential for above-average financial gains. Income funds invest in stocks that pay regular dividends. Index funds track a particular market index such as the Standard & Poor’s 500 Index. Sector funds specialize in a particular industry segment.

Avoiding fraud

By law, each mutual fund is required to file a prospectus and regular shareholder reports with the SEC. Before you invest, be sure to read the prospectus and the required shareholder reports. Additionally, the investment portfolios of mutual funds are managed by separate entities know as “investment advisers” that are registered with the SEC. Always check that the investment adviser is registered before investing.

Send Us a Message

Contact Info

  •    211, Jagat Trade Centre ,Fraser Road Patna

  •    (+91)9430046393

  •  (+91) 7061994929

  •    www.uparjanenterprises.com

  •    Mon-Fri 09:00 - 17:00

We focus on advice consulting business financials Get A Quote