What is funda of mutual fund ? How it goes up and down ?What are its benifits and good companies to invest in?

Answer 1

as i understand it, mutual funds are investments that comprise many different stocks - for example, a mutual fund with investments in health care would contain stocks from several different health care companies. the fund goes up and down as the individual stocks go up and down. however, there is less risk involved because the other stocks in the fund may not drop (or may go up), thus protecting you from a large loss.

of course, since there is less risk, there is less reward, so the return on your investment is slower. this is a good long-term choice for investing, for example, for retirement or your kids' education.

talk to a financial advisor about the best way to invest in MFs. all the big guys do it - charles schwab, prudential, etc. you can even talk to a guy at your bank who can help you out.

good luck!