#1
January 24th, 2016, 04:26 PM
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Mutual Funds Advantages and Disadvantages
I want to invest some money in mutual fund so guys , can you tell its Advantages and Disadvantages for make a good decision ???
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#2
January 25th, 2016, 09:03 AM
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Re: Mutual Funds Advantages and Disadvantages
As you asked I am telling mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities, Mutual funds are currently the most popular investment vehicle and provide several advantages to investors, including the following: Mutual Funds Advantages Increased diversification: A fund normally holds many securities; diversification decreases risk. Daily liquidity: Shareholders of open-end funds and unit investment trusts may sell their holdings back to the fund at the close of every trading day at a price equal to the closing net asset value of the fund's holdings. Professional investment management: Open-and closed-end funds hire portfolio managers to supervise the fund's investments. Ability to participate in investments that may be available only to larger investors. for example, individual investors often find it difficult to invest directly in foreign markets. Service and convenience: Funds often provide services such as check writing. Government oversight: Mutual funds are regulated by the SEC Ease of comparison: All mutual funds are required to report the same information to investors, which makes them easy to compare. Advanced Portfolio Management Mutual Funds Disadvantages Risks and Costs No Guarantees No Control Less predictable income No opportunity to customize Professional Management Taxes Inefficiency Dilution High Expense Ratios and Sales Charges Management Abuses Poor Trade Execution |
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