Fees Associated with Investing in a Mutual Fund

All mutual funds have fees and expenses that are paid out of investment returns and potentially from fund assets. Some mutual funds also have a sales charge that is paid when buying or selling your interest in a mutual fund. Some of the associated fees include: Management Fee – Most mutual funds charge a managementContinue reading “Fees Associated with Investing in a Mutual Fund”

Where to Get Relevant Information About a Mutual Fund

All mutual funds have different characteristics – fees, risk, objectives, holdings, performance and management. As such, before investing you want to have to read up on these to make an informed decision on the appropriateness or otherwise of the mutual fund for you. The information to make this decision can be found in the fundContinue reading “Where to Get Relevant Information About a Mutual Fund”

Two Important Things to Keep in Mind about Mutual Funds

There are two important things to keep in mind when investing in a mutual fund regarding the risks and the returns. Risk – The level of risk and return depends on what the fund invests in. Mutual funds are not guaranteed or insured. So you can lose money investing in mutual funds. Past performance –Continue reading “Two Important Things to Keep in Mind about Mutual Funds”

How to Invest in a Mutual Fund

You can typically buy into a mutual fund by contacting the investment management company that is sponsoring the particular mutual fund you are interested in. This can be done in three ways: Branch Office – Visit the physical location of the mutual fund company, completing a set of forms, providing ID documents and funding yourContinue reading “How to Invest in a Mutual Fund”

How a Mutual Fund Works

The mechanics is quite simple, money is pooled by investors into an account and then invested in instruments such as stocks and bonds, real estate on behalf of all the investors in the fund. Structure – The management of a typical mutual fund would involve different organisations, such that there are multiple layers of securityContinue reading “How a Mutual Fund Works”

What Mutual Funds Can Do and Can’t Do

If you are new to investing, mutual funds can be a good place to start to get your feet wet for a number of reasons. Expert management – An investment professional actively manages the portfolio, determining what, when and how to buy or sell securities. This is particularly helpful because the professional has access toContinue reading “What Mutual Funds Can Do and Can’t Do”

Common Types of Mutual Funds

All mutual funds aren’t created equally, there are mutual funds for different asset classes and there are blended ones too. Here we share the common types of mutual funds: Money Market Fund – These are the most popular ones and they invest in short-term fixed income securities – Treasury bills, commercial paper, and certificates ofContinue reading “Common Types of Mutual Funds”

Benefits of Investing in a Collective Investment Scheme

When you invest via a collective investment scheme, you are entitle to a pro-rata share of the profits and losses, risk and rewards that accrue to the securities in that pool. So what are the benefits Experienced professionals manage your money Low cost of entry, compared to direct investment. Can get your money back promptly.Continue reading “Benefits of Investing in a Collective Investment Scheme”

Different Types of Collective Investment Schemes

A collective investment scheme is a scheme in whatever form that allows different individuals to pool their resources together for the purpose of investing their pooled funds. Each individual holds participatory interest in the joint assets and share the risks and rewards in proportion of their participatory interest in the scheme. The broad categorisations include:Continue reading “Different Types of Collective Investment Schemes”