Seeing the interest rate futures have fallen to very low levels, many are looking to put their savings into more profitable investments. So some people think investing in mutual funds, ignoring perhaps the chance of loss from this investment.
What is the fund?
Fund is the common property created by a group of investors. Depending on the amount contributed by each investor, and is the holder of the corresponding part of such property in the form of shares. O number of shares of a fund is growing as new investors buy shares and reduced shareholders when they leave it. Those syneisferooun the creation of such property, sharing profits and losses that may arise, depending on the share of each. The chapter concentrates shall be managed by a management company Investor Mutual Funds (Anonymous Mutual Fund Management Company).
There is a risk of loss of the capital investment?
Mutual funds advertised as relatively safe investments on the grounds that it is spreading the placement. However, there are rare times where the performance of mutual negative.
No cost to participate in a mutual fund?
There is a cost share of capital, both on entering the fund and the exit (liquidation). This percentage may be in the range from 0.2% to 5%.
There is a time commitment?
If someone wants it no later than five days to liquidate his share. Of course if the mutual loses, perhaps someone still trapped Anticipating the rise of value.
Who comes out a winner?
That certainly is a profit after the management company receives commissions. The investor can make a lot but could lose as many.
Not accidentally the fine print at the end:
Funds do not provide a guaranteed return and past performance does not guarantee future performance.