Mutual Funds
1. What is mutual fund?
Mutual fund is like a pool of money from investors that will be managed by a professional
investor called fund manager. In other words, mutual fund is a collection of investments,
such as bonds, stocks, and other funds owned by a group of investors and managed by
fund managers.
2. How do mutual funds work?
Mutual funds pool money from investors and fund managers will use it to buy investment
instruments. When the securities generate profits, fund managers will pass it back to the
3. Types of mutual funds
 Money Market Funds
Consist of short-term debt securities which are safer but have lower potential return.
 Fixed-Income Funds
Invest in debt securities with specified interest rate.
 Equity Funds
Invest primarily in stocks.
 Hybrid Funds
A mix investment of stocks, bonds, and other securities.
5. What is mutual fund fact sheet?
Mutual fund fact sheet is a detailed summary that covers basic information and an
overview of the mutual fund. It allows even beginner investors to be well informed about
their own investment.
6. What are the advantages of buying mutual funds?
 Professional management
Fund managers are experienced, professional and experts in their field.
 Diversification.
It can reduce the impact of the performance of any one security to the entire portfolio.
 Liquidity
Investors are able to sell their mutual fund immediately in a short period of time.
. types.jsp fund-fact- sheet.asp disadvantages-mutual- funds

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