Submit Articles A Collection of Informative and Interesting Articles  
 
HOME WANT AN ACCOUNT? SUBMIT ARTICLES TOP AUTHORS Debt Collections (Advt.)
 

Mutual Fund Secrets You Should Know

BY: Jo Justin | Category: Finance | Submitted: 2010-03-19 10:09:23
       No Photo
Article Summary: "Mutual funds are one of the best investment avenues. There are some secrets that you should know if you are going to invest in a mutual fund. They are presented here..."


Share with Facebook Share with Linkedin Share with Twitter Share with Pinterest Email this article




Mutual fund investments are the best kind of investments that are on offer. There are many reasons for this to be considered to be true. You do not have to spend time each day to track the investments that you have made in the equity market. The mutual fund manager does that work. So that takes a lot of burden off your shoulders, but the fact remains that there are times when you have to track your mutual funds for their returns and also make appropriate adjustments. The benefit from investing in the mutual fund is that you save a lot of your time and the fund manager readjusts the portfolio and so you get a better return on your investment.

In spite of many of the advantages of mutual funds and all other funds, there are a lot of things that you have to keep in mind when you invest in mutual funds. There are many new fund offers that hit the financial market every now and then. All these are very attractive when you look at them in print, but you have to remember that they may not be that attractive when you really delve into the details of the funds.

Some of the important facts that you have to understand before you invest in the mutual fund are as follows.

1. Cheaper the NAV, better the fund:

This is absolutely wrong. The reason is that if the NAV of a particular mutual fund is very less, then that could mean that the fund has been offering a very less return on investment to the investor. The NAV of a mutual fund increases when the return for an investment is very high. This means that the fund manager has timed the market very well and has been able to make a lot of return on the money invested.

2. New fund offers will perform better:

This is another mistake that people usually make. There are a lot of people who think that the new fund offers are the ones that will make a great difference to their returns on investment. This is because since it is a new fund, it will perform better. This is absolutely wrong again. Unless the fund is well managed, there is no way that the fund will do better.

3. Diversification in many funds is better:

Yes, Diversification in more than a single fund is always better, but this does not mean that you have made the best investment. Though you should diversify in more than one fund, you should also remember that you should check the track record and history of the fund being managed to make a decent amount of money as returns on your investment.

4. Dividend paying funds are better:

The amount of money that a fund pays you as dividend may be returned to you or can be reinvested according to your preference, but you should remember that when the dividend is paid, the NAV of the fund decreases because of the money paid to you. If you reinvest, then the number of units you get will be more. This makes it very similar to the other funds.

About Author / Additional Info:

Comments on this article: (0 comments so far)

Comment Comment By Comment Date

Leave a Comment   |   Article Views: 2338


Additional Articles:
•   Complicity in the Couple.

•   Short Story: THE FLOWER THAT DIDN'T BLOOM

•   A Web Browser With Built-In Antivirus and Lots More

•   Whatever Type of Sleeper You Are


Latest Articles in "Finance" category:
•   DEMYSTIFYING THE ONTOLOGY OF TAXATION RULINGS IN THE GAMBIA: PART III

•   DEMYSTIFYING THE ONTOLOGY OF TAXATION RULINGS IN THE GAMBIA

•   Why is Wheeler Insurance Renewal Important and Beneficial?

•   Turn Your Skills Into MONEY

•   I'm Giving You a Raise

•   Public Sector: A Pride to Say Or a Price to Pay....

•   Internet as a Source of Income



Important Disclaimer: All articles on this website are for general information only and is not a professional or experts advice. We do not own any responsibility for correctness or authenticity of the information presented in this article, or any loss or injury resulting from it. We do not endorse these articles, we are neither affiliated with the authors of these articles nor responsible for their content. Please see our disclaimer section for complete terms.
Page copy protected against web site content infringement by Copyscape
Copyright © 2010 saching.com - Do not copy articles from this website.
| Home | Disclaimer | Xhtml |