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How to invest in mutual funds

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How to invest in mutual funds? Are there tips and appropriate solution to achieve the benefits of a mutual fund?

There are many options to invest, so that you can maximize your income. From the results of the investment, you can add assets, gain so that you can grow richer than ever before.


Are you ready to start investing in new ways other than deposits in the bank? If you have extra money you earn from your salary or profit from your business, then after you save your money on insurance and to pay other obligations, then you can choose mutual funds as a new instrument to make your money to work.

By asking for advice to financial advisers, you can to enjoy the profits, so that you will be happy investors in the near future. You are ready to create a new financial plan with new investments in mutual funds?

Before you invest in mutual funds, then we need to understand this well. Mutual funds can be interpreted is a container and the pattern of fund management / capital for a set of investors to invest in investment instruments available in the market by buying mutual funds. These funds are then managed by the Investment Manager  into the investment portfolio,whether it be stocks, bonds, money market or securities / other security.

From the above definition, there are three important elements in terms of Mutual Fund are:

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1. The existence of a collection of public funds, both individual and institutional
2. Joint investment in a diversified portfolio of securities that have been
3. Investment managers believed to be the fund manager owned by public investors.

In mutual funds, investment management to manage the fundsplaced in securities and realized gains or losses and to receive dividends or interest recorded into the Net Asset Value (NAV). Wealth mutual funds managed by investment managers are required to be stored at the custodian bank that is not affiliated with the investment manager, custodian bank where this will act as a collective day care centers and administrators.


Do you want to invest in mutual funds?
If you want to live more prosperous, then mutual funds may be an option.

A few simple tips that could be a reference are as follows:

 One:


Set objectives before investing: for short-term (1-2 years), medium (2-5 years) or long (> 5 years). For the short term, better use of money market mutual fund products. For the medium and long term fixed income mutual funds can, mix, and the stock.

Two:


If you want to invest in mutual funds, money that should be of truly "idle" for the next 2-5 years, or you have a goal to be achieved.This way, you do not easily panic when there is fluctuation in price or there is a sudden need.

Three:

Know your risk profile, including investors who are conservative, moderate, or aggressive. To find out, the contents of the risk tolerance questionnaire provided by your investment manager. If you find that you are the type of conservative investors (or the first time are going to invest in mutual funds), you are better suited to invest in money market funds. 

Four:


Learn the types of mutual funds available. Read the prospectus carefully, discuss every detail that you are not familiar with the investment manager. What must be seen is what the portfolio.Each type of mutual fund gives a brief overview of their investment objectives and types of securities, in which mutual funds will be invested. By reading it, you'll know whether this type of mutual funds according to your investment goals or not. Learn also the performance of mutual funds, compared with similar mutual funds from other enterprises. Also examine the costs borne by investors.

Five:


Consider who the manager of the investment, how his track record, and the prospect of such products. View to future investment manager of the macro economy, currency, and the industry trend of the stock / bond portfolio, past performance relative to similar competing products, you need to consider.Just need to be considered, previous performance does not guarantee future results. The results of mutual fund investments may fluctuate.

 Six:


Buy mutual funds in stages, for example, plus a little every month.Price mutual funds that will go up and down. If the deposit on a regular basis, the average price of mutual fund units purchased will be lower than bought only once. Technique known as cost-averaging is very commonly used in mutual funds. Besides the purchase can also be directly carried out in large numbers with the objective to be achieved in the future.

 Seven:

Do not put your eggs in one basket. 
Keep diversification. That is, the funds allocated in mutual funds need to be dispersed to other types of mutual funds, whether fixed-income mutual funds, stock mutual funds, etc.. Its composition depends on the character of your investment.

 Eighth:


Defend your objective, do not be swayed for a moment fluctuations. The term, just close your eyes to the fluctuations and keep buying mutual funds, for after all, the new results will be taken if the financial goals you have achieved.

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