Thursday, July 10, 2008

Investing in Mutual Fund

I always have the great desire to invest in Mutual Fund but just don't know when to start. We may call it as a defensive move on my part but I just want to know the concept of the game prior to investing. Frankly, I was a bit skeptical because the market seem to be volatile. Hopefully, I will invest a portion of my hard-earned money in Mutual fund, the soonest possible time.

For the benefit of those who doesn't have any idea as to what Mutual fund is all about. A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund. Many experts believe that it's one of the best investments ever created because they are very cost efficient and very easy to invest in.
It is is far more secure though and earn more than bank deposits.

When you invest in Mutual Fund, you are buying the shares at a specified amount or called net asset value per share(NAVPS).You can get a profit from it once you redeem the shares at a higher NAVPS.
Invest now..!!!
GOD BLESS US ALL.

No comments: