You may have many questions when you are making your decision for your investment plan. I recommend you to think about mutual funds. It has many benefits that you will not think about.
Do I lose control of my money?
Not at all. You’re always in control. You decide which funds to invest in, depending on your investment objectives.
How do it work?
When you invest in a mutual fund, your money is pooled with that of many other investors. A professional fund manager then invests this pool of money in a wide range of securities. Mutual funds are divided into shares or ‘units’. Those units belong to the investors in the fund. The number of units you are allocated depends on how much you invest. Unit prices are usually set each business day, according to the value of the fund’s investments on the previous day.
What do it invest in?
Mutual funds can invest in all three types of financial assets – stocks, bonds and cash (money on deposit) all over the world. Some funds may also use other investment tools such as futures and options.
Can I get my money out quickly?
Mutual funds offer you liquidity and access to your money. You can buy and sell your fund investments on any dealing day (most business days). The redemption proceeds will normally be paid within 5-14 days after you sell.
Why should I consider it?
Easy – You decide which funds to invest in and then professional managers take care of all the day-to-day decisions, so you don’t have to watch the markets constantly.
Hassle-free – You do not have to spend time doing stock research or administration work, such as stock settlements and splits or foreign exchange, yourself.
Affordable – Start investing in global markets usually from a lump sum or through monthly investment plan.
Flexible – Tailor-make your own investment portfolio to suit your changing needs and circumstances with the wide range of funds on offer.
Good growth potential – With professional fund managers working for you to identify investment opportunities worldwide, you can diversify your investments and benefit from potential growth.
Risk reduction – Mutual funds generally invest in a wide range of securities, covering several different markets. This gives much more diversification than you can generally achieve on your own.
Liquidity – As you can buy and sell your funds at any time, you have full control of your investments and access to your money.