A mutual fund is a type of investment fund. An investment fund is a collection of investments, such as stocks, bonds or other funds. Unlike most other types of investment funds, mutual funds are “open-ended,” which means as more people invest, the fund issues new units or shares.
A mutual fund typically focuses on specific types of investments. For example, a fund may invest mainly in government bonds, stocks from large companies or stocks from certain countries. Some funds may invest in a mix of stocks and bonds, or other mutual funds.
Why should you invest in Mutual Funds:
When you buy a mutual fund, you’re pooling your money with many other investors. This lets you invest in a variety of investments for a relatively low cost. Another advantage is that a professional manager makes the decisions about specific investments. Also, mutual funds are widely available
that can be bought or sold at any time., thus allowing liquidity and freedom to grow your money at any time.
Understanding how a fund has performed in the past can’t predict how it will perform in the future. However, it can give you an idea of how the fund has performed in different market conditions. At True Value Financial Inc, we help you understand the investment logic and help you understand how the fund compares to:
- other funds with the same investment objective
- a relevant benchmark
We undertake a lot of research and due diligence while recommending funds to suit your risk tolerance and time horizon.