STOCKS & MUTUAL FUNDS
It is very important to make a proper successful portfolio to earn maximum profit. This task is not very easy for any individual. The choice is present for everyone to make his or her portfolio. In any portfolio individual have a right to buy different stocks and manage his or her risk strategy. Every one wants to set his or her portfolio with minimum risk for maximum profit.
Mutual funding is a modern way for earn profits from stocks with minimum risk. In mutual funding individual, give his or her money to any investment company who is running the mutual funds investments. Than this company has responsibility to invest your money in different stocks. This company can investor your money in different financial instruments, which can be shares, bonds, gilts, real estate investment or some long-term investments.
In mutual funding company has responsibility to invest your money in different ways. They have trained and expert member for decision and have a verity to invest the money of investors in different ways.
Some properties of mutual funds are given below to explain it more in simple words.
1. Professional skills
2. Diversity
3. Choice
4. Convenience
These above four properties of mutual fund are the characteristics for any person to attract towards mutual funding concept.
1. Professional skills
Every mutual funding company has a very vast skilled and experienced people, who work in stock market field for many years. These people are trained them self for difficulties of market. These professional are responsible for operations of the company in all directions. These persons have a full power to buy or sell any stock at any time in stock market. They take decision on their pat vast experience. So for the individual it is very best for them to give money them and enjoy profits.
2. Diversity
Diversity means verity, broad or expansion in different aspects in different ways.
Mutual fund is diversified in many areas of stocks in stock exchange. Professional buys and sells different stocks to minimize risk of small inventors. They buy and sell stocks of different sectors to deal with stocks in best way. They purchase stocks of high-risk sectors and to minimize that risk they purchase low risk sectors stocks to keep the risk graph in level. In the point of view of single person, he she cannot diversify his investment as like them.
3. Choice
Individual has a choice to select which company in whole market toniest in it for mutual funding. Many companies are their which are giving their service in different services. Some companies target local markets only and some target foreign markets only. Some also select a specific sector in local country. Therefore, choice is there for individual.
4. Convenience
Mutual funding companies also provide some more service to you for example tax returns and payment/receipt schedule. They send you profit statement every period and adjust your returns.
If we talk about the single investment from a single individual than the risk, matter is high and a single person cannot diversify as the company can do.
HOWEVER, with single investment person has a facility to invest his money where he wants and no fee expense of company.
