Do you want to invest but your money is low and you do not want to take high risk? Do you want assets, but do not want to pay for a broker for fees and commissions? Then invest your money in mutual funds. Learn to invest in mutual funds with these simple tips and ideas. You can have the investment in mutual funds with starting money of $ 50.
Mutual fund is the collective money of a number of people who are then invested in various types of shares. Once you bought shares in mutual funds, they were virtually shares purchased from the investment company or company. The assets of that company include bonds, stocks, certificates of deposits, and others. Investment fund started in the United States in the year 1924. By the year 1970, the fund only has 57 million assets. But today, the account raises more than 4 billion dollars, with 11 thousand more investment funds provided by hundreds of several companies.
The importance of the mutual fund is its nature of diversification. Diversification reduces the risk of investing in higher yields. But for you to diversify, you are required to have a lot of money for investment. If you want to buy stocks from different companies, they should be from different industries to avoid further risk by preventing a big loss when a sudden drop occurs to a certain industry.
Mutual funds can also have values. For the 75 percent mutual fund, a security box is 5 percent and below. But, 25 percent can have one. Therefore, you buy stocks in mutual funds, where they already have various securities like bonds, money market funds, stocks, real estate, and more. So mainly, you can buy a single piece of mutual fund and get the benefit of diversification.
Another thing that makes the mutual fund better is the ability to buy it and leave it there because they are dealing with professionals, always working to find the best for the money. Investors will constantly receive full reports on their fund and will always update how their money is. They have a yield of 12 percent on average, which surely outperforms banks and other profits.
Applying for a mutual fund is very easy announcement that you can do it online. Just be sure to research, study and do some research on the companies they offer, so you will not fall into the wrong one. When evaluating, you should know your performance during the last three, five, ten years, so you will know how they worked with the different populations environment for many years.
You need to make a decision about how long you are planning to keep it. And you should know what percentage of risk you can take. Finally, know what type of mutual fund is best for you. If you are given document paper or what we call a prospectus, read. There you will find information about mutual funds, their objectives and the types of securities in which they were. Charges can also be seen there and also fund performance for years.
How to invest in mutual funds is also known as cara investasi reksadana”
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