Public Mutual Consultant

By: Public Mutual Consultant  24-05-2008
Keywords: Public Mutual Consultant

Why Invest In Mutual Funds? If you are considering investing in stock market and are afraid of its some what unpredictable fluctuations, you can definitely consider investing in mutual funds. Some of the reasons that go strongly in favor of mutual funds are their lowest risk factors owing to diversification of assets in to various sectors and scrips or instruments within. As with the risk, the costs of unit share too are spread across making them affordable by almost any one. If you are looking at open end funds you can always purchase them from the company at the NAV minus some loads or expenses. The closed end funds give you the flexibility of independent stocks while combining the best of the features of mutual funds. How Mutual Funds Manage To Reduce Their Risk? Fund managers allocate available funds in a specified proportion among various instruments of investments. Consider a fund being well diversified across the spectrum of exchange listed stocks and bonds which yield a guaranteed return in addition to being invested in money markets and real estates. While bonds and money market investments provide a low but steady return, other instruments are of high yielding character in a short period. The higher risk of high yielding portfolio is compensated for by the investments in bonds in events of adverse market behavior. The portfolio will be constantly reviewed and adjusted to variations in order to maximize returns and minimize risks. This means, fund managers buy or sell stocks or bonds as per the dictates of the fund and market pulls. For example an investment in a perceived risky instrument will be sold immediately and reinvested in a prospective media of the time. If you can’t decide which mutual fund product is the best for you, let me assist you about this. Feel free to contact my email: [email protected] If you can't contact me directly, just goto Mutual Fund Forum at

Keywords: Public Mutual Consultant

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