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January 25th, 2016, 09:03 AM
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Join Date: Mar 2012
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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