Mutual Funds: A Professionally managed investment fund

Mutual Funds: A Professionally managed investment fund

Mutual Funds: A Professionally managed investment fund 


Hey readers, today's topic very fascinating because in this article we're going to talk about MUTUAL FUNDS.
In this article, we're going to cover all the related data about MUTUAL FUNDS.
This article is also a very important article because in this article we're going to clarify some myths about mutual funds among people.




The topics discussed in this article are listed below.


1. Introduction of Mutual fund.
2. History of Mutual funds.
3. Advantages and disadvantages of mutual funds.
4. Myths about Mutual Funds.

So, let's start with

1. Introduction of Mutual Fund


Mutual Funds are said to be a source of investment. Mutual Funds can be defined as a professionally managed investment funds. It pools the money to purchase securities from most of the investors. The investors who are willing to purchase this kind of investment fund are might be an organization, institutional or retail investors.




2.  History of Mutual Funds


Mutual Funds are firstly introduced in the year 1773-1774 from the Dutch republic. This year the Dutch Republic faced a huge financial crisis in its region. To come out from this crisis they planned a professionally managed investment policy called Mutual Funds. This policy will very helpful to them. This policy not only helps to recover the Dutch republic from the financial crisis but also helpful for making stability in its economy.

Secondly, it was introduced by the United States in the year of 1890. They also introduced is open up function for the first time and make it more relevant which was accepted by the whole world.

Now, let's understand some advantages and disadvantages of Mutual Funds.





 Advantages

1. Small investments


Mutual funds provide you a feature that you can invest your money in it at Smaller Price. Anyone is able to purchase a mutual fund if it has only 500 Rs. This advantage is known as one of the best advantages of Mutual funds. It approaches the poor or low-class people to invest in mutual funds.

2.  Liquidity in assets


It contains day to day liquidity on assets. This facility makes it impressive because in investment the liquidity percentage is can below but in mutual funds, you can enjoy the everyday trading facility.


• Disadvantages


1. Fees to Professionals


Mutual funds are the professionally managed funds. The work of managing these funds is done by its professionals and they charge fees to its holder. That's why it might be very costly.


2. Risk


Mutual funds are subject to market risk here you earn a profit or also can suffer loss. It totally depends on the market position. In an easy way, we can say that you are not assured that you make a profit if you invest in Mutual Funds.

SO, here we see all the Pros and Cons of Mutual funds but now we're going to cover the last topic of this article which is mentioned below.

4. Myths of MUTUAL FUNDS






There are some Myths In the market that Mutual Funds means a waste of money. Yes, it is true that Mutual Funds are risky but it is effective too. Mutual funds need patience it is not a lottery that you win in one day. It takes a long time and people who give this with patience can give an abnormal profit to its holder.

So, here we discuss all the related data about Mutual Funds.
Hope you like.

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