What are Mutual Funds?

Mutual funds are collective investments by corporations and investors to form a massive fund for diversified portfolios of stocks, bonds, money markets, securities and other mutual funds. Mutual Funds are managed by experts called Fund Managers.

Why should you invest in Mutual Funds?

Oh gosh, if you don’t have any Mutual Fund account yet, you surely are missing a LOT! The funds that you invested today would appreciate in value and would become millions in the long run.

If you don’t want to invest in the stock market because you don’t have enough knowledge or simply because you don’t know how to, Mutual Fund in Equity is one of your best option. You can also earn dividends with MFs. Here in IMG we can definitely teach you how to invest in mutual funds and build your own portfolio.

Because there is no safe investment, investors rely on other investment wheels like Mutual Funds and Trust Funds since these investments are already performing well and are managed by financial gurus and professionals. Whether you have a short-term or long-term investment, they will still give you higher earnings.

What are the types of Mutual Funds?

• EQUITY FUNDS

Equity Funds have the highest risk among all Mutual Funds however they could give the highest earnings. These Mutual Funds are also called Stock Funds by many investors because they are invested primarily in stocks. These Mutual Funds are suitable for aggressive types of investors because they have the highest risk.

• BALANCED FUNDS

Balanced Funds are also suitable for aggressive individuals since they are invested in mixed equities and debt instruments. They seek to provide total return and high level of income with the preservation and liquidity and long-term capital appreciation.

• BOND FUNDS

Bond Funds are suitable for moderate risk-takers. Their objective is to provide capital preservation and appreciation as safety as possible. They could give higher earnings compared to traditional fixed-income money instruments like time deposits.

• MONEY MARKET FUNDS

Money Market Funds are suitable for conservative type of investors. The objective of these mutual funds is to seek capital preservation and stable income through diversified portfolio of money-market instruments.

I hope this article helped! Enjoy investing!

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