2007-03-07 05:03:38 · 7 answers · asked by nandu 1 in Business & Finance ➔ Investing
investing in mutual funds is same like investing in share market only in mutual fund investment is made by experts on our behalf there fore it has less risk of loss as well as less returns on investment if you are not ready to take more risk you can invest in mutual funds and pass on the botheration of buying &selling shares to the experts
2007-03-07 05:19:32 · answer #1 · answered by bora_nc 2 · 0⤊ 0⤋
The Risk in the mutual find is very low comparing to share market and if the mutual fund holder , if invest the fund in a good corporate , this rick will be eliminated. Benefit is that it is purely risk free and there is an assurance that our money's value will be increased for sure.
2007-03-07 05:20:19 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Risk and reward goes together. Investing in mutual funds too is having its own risks, but with little care the risk can be minimized.The risk is that the equity market is subject to various factors like govt policies, war, terrorist attacks, industry growth etc.However in most of these times the whole economy will be affected.
Reward is that the returns will be much higher than any other type of investment, except a few like real estates which too is still riskier.
2007-03-07 17:13:23 · answer #3 · answered by vmperumal1506 2 · 0⤊ 0⤋
The risks - mutual funds are like any other investments vehicle...it can go down. mutual funds are not guaranteed to go up. I am not trying to be negative, i am just saying. Also, you may pay higher transaction fees id you have a fund manager with a happy trigger finger. Unless you hate investing, I would learn to invest on my own because only you know where your money needs to go in the future.
The benefits - you are not stressing about where you will invest your capital. that is why fund managers are paid...to stress for you. you can also make a good return and mutual funds can be no-load (no fees to buy and sell). Mutual funds are also typically taxed-lower becuase they are held on to longer.
2007-03-07 05:49:41 · answer #4 · answered by nadoracing 1 · 0⤊ 0⤋
mutual funds are a lot less riskier than stocks, but they also dont give high returns as stocks do. The higher the risk the more return you get on your investments. so, if you are a moderate investor go with mutual funds, but with a diversified portfolio.
2007-03-07 05:46:48 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Diversification. You get to own many different securities without having to individually purchase them. They are also actively managed by a professional who most likely has A LOT more experience and ability than you. Look into UITs--They're similar to mut funds but can have better returns and are more tax efficient.
2007-03-07 05:49:49 · answer #6 · answered by pretzel2222 3 · 0⤊ 0⤋
One thing i learnt from my little experience is .... invest for long term (the reason is anyway the market will grow as we are a developing nation) and invest in only those schemes that gives you tax exemption (the reason is you right away save 10-30% of the amount you invest).
Enjoy safe and high returns :)
2007-03-08 23:56:13 · answer #7 · answered by Quiker 1 · 0⤊ 0⤋