You can choose the right combination of options that represents your demands and needs. We invest to fulfil certain demands and needs for our everyday life which include comfort, routine and travel.
It is a myth that only rich people should be investing in mutual funds. Investing in mutual funds can help you live a secured and comfortable life. Mutual funds permit you to invest your money in a wide variety of stock units and securities which are taken care of by a professional manager.
When you plan to save you need to make your mutual fund Investment plan and choose from a category that suits your wallet and desire to achieve something. Read below the following pointers to understand the different types of mutual funds that you can invest in:
a) Money Markets Funds:
You can invest in short term fund plans of securities like government bonds, commercial papers, certificates of deposit, etc. Since this is a government oriented one, they are a safe investment but the potential returns of these funds are very low as compared to other mutual funds.
b) Fixed Income Funds:
As the name suggests, these investments pay a fixed amount of returns. The main aim of this kind of mutual fund investment is to let the money keep coming in on a daily basis, generally through the money earned.
c) Equity Mutual Funds:
Investing in mutual funds for this type is to buy stock units. The main aim of these mutual funds is to earn more money in a faster way. This is a risk-taking fund where you can lose your money. You can choose among a wide variety of fund options for this kind of plan.
d) Balanced Funds:
As the name suggests, this fund plays a balancing act between income equities and income securities. The main aim of this is to get higher returns rather than losing money.
e) Index Funds:
With this kind of funds, they aim to make a way for the performance for a specific index. There are tendencies that the values of this index can become volatile and can have a lower cost than the actual mutual fund.
f) Specialty Mutual Funds:
The main focuses of these funds includes real estate, products and investments in social responsibility. You can invest in companies that represent the ideals of environmental safety, human rights and other humanitarian causes.
g) Fund to Fund:
As the name suggests, one fund can invest in other funds. This makes modification easier for the investor.
Make your savings count by investing in Mutual funds now and watch your life change.
Don’t get the advantage alone, spread the good news by sharing the information. Share this on social media sites like Facebook and many will be glad that their life changed due to you sharing the information.
- Mr Eric Williams
- Publisher: Independently published
- Paperback: 123 pages
- Eric Tyson
- Publisher: For Dummies
- Joseph Hogue
- Publisher: Efficient Alpha
- Paperback: 64 pages
Last update on 2020-03-19 / Affiliate links / Images from Amazon Product Advertising API