A Beginner's Guide to Mutual Funds

Shopping, Retail News & Press Release Distribution Services

Home | Retail News | Submit Press Release

Unlimited Press Release Distribution

News Media List

MSNBC Retail News
Financial Times

Internet Retailer
Luxury Daily
New York Times
Planet Retail
Retail Technology Review
Retail Bulletin
Supermarket News
Special Retail Report
Women's Wear Daily

RSS News Feed

Get your news feed listed here as other news media shown above! Submit RSS News Feed

Retail, Shopping News Releases

Search retail news:

A Beginner's Guide to Mutual Funds
(Shopping-NewsWire.com, September 15, 2023 ) DUBAI, UAE – (ARAB NEWSWIRE) -- Lately, mutual funds have evolved as a potentially profitable investment option. Financial advisors consider it a well-diversified, tax-efficient way of growing money, especially for amateur investors. Fund managers professionally manage mutual funds by pooling money from investors and creating a fund with stocks that may yield potential good returns. This minimizes the need for investors to manage these investments actively.

What Is a Mutual Fund?

A mutual fund is an investment option that pools multiple investors' money to purchase large portfolios of stocks, bonds, and other securities. The collective holdings of stocks, bonds, and other assets are known as the fund's portfolio. Mutual funds help investors diversify their investments by investing in a wide range of asset classes and securities so that they can minimize the risk to their portfolio even when the market fluctuates.

Types of Mutual Funds

Typically, mutual funds in the UAE fall into four categories:

• Stock Funds – Invests primarily in stocks, synonymously known as equity funds.

• Bond/Debt/Fixed Income Funds – Generates fixed monthly income by investing in government, municipal, corporate, and convertible bonds.

• Balanced/Hybrid Funds – Comprises debt and stock or equity components in a single portfolio with a specific ratio for each type.

• Money Market Funds – Comprises high-quality, short-term securities that aim to provide high liquidity to investors with a lower level of risk.

Since mutual funds are professionally managed, they can be further classified into the following:

• Actively Managed Funds - Professional fund managers manage this category of mutual funds to outperform the Benchmark Index. Actively managed funds benefit from the expertise of professional managers, thereby levying a fee for the same.

• Passively Managed Funds - This category refers to investment holdings replicating and monitoring benchmark indexes. They typically have lower fees or expense ratios.

How to Invest in Mutual Funds?

Individuals can start investing in mutual funds efficiently by following the steps below:

• Open an investment account with a bank or Asset Management Company

• Fulfill the Know Your Customer (KYC) requirements as recommended to complete the investor's profile

• Once the account is opened, investors can start investing by buying or selling mutual funds

• One can also start investing in mutual funds as a lump sum or a Systematic Investment Plan (SIP). A SIP allows the investor to invest through smaller installments at monthly intervals, and it can be a feasible option if an investor does not want to invest a large sum of money at one go

By logging into their investment account, investors can check their investment details, performance, fees, and other information. As the mutual fund market has many options, investors should explore the market to understand the different types of schemes available and align them with their investment objective, risk appetite, and affordability to understand the best suitable scheme. Investing in mutual funds may involve certain costs like advisory fees, investment management fees, operational costs, etc., which customers should be aware of.

How Do Mutual Funds Make Money?

Investors can make money through dividends and capital gains by investing in mutual funds. Some mutual funds provide dividends based on the performance of their stocks. Investors can generate potential returns if they choose to invest in dividend-yielding mutual funds. Many asset management companies also offer an option to reinvest their dividends, allowing investors' money to grow.

Mutual funds also allow investors to earn via capital gains. Like stock markets, investors purchase a mutual fund at a specific price. When the price of those units increases in the future, one can sell them and earn a profit.

Conclusion

According to a well-known financial proverb, "To become wealthy, you need to be able to make money even while you sleep." Mutual funds materialize this saying. A lump sum investment can help investors gain from the investment when the value of the fund increases. When investing in a Systematic Investment Plan, a specific amount of money is invested every month, and an individual can see their investments grow. It might be a slow start initially, but with time, it may increase significantly. So, set goals, choose the right funds, and start investing!

About iQuanti

iQuanti ignites powerful and predictable digital marketing performance for global brands with an approach rooted in data science and deep vertical knowledge.

Notice:

Opinions, analyses, reviews, or recommendations expressed in this article are those of the select editorial staff's alone, and have not been reviewed, approved, or otherwise endorsed by any third party.

This press release is issued through Arab Newswire (www.arabnewswire.com) – a newswire service for Arab World, Middle East and North Africa (MENA), and it is distributed by EmailWire™ (www.emailwire.com) – the global newswire service that provides Press release distribution with guaranteed results™.

iQuanti, Inc.

-

-

-

Source: EmailWire.Com

Retail News by Sector

Accessories
Department Stores
Fashion
Home/Household
Entertainment

M Commerce
Online Retail
Retail Magazines
Retail Issues
Store Design

Sign-Up To Our Free Newsletter!

Shopping and Retail NewsWire

Retail RSS Marketpalce

Target Press Releases
News releases from Target. Second retail giant in America.
Free Food & Beverage Magazines and Downloads
Get free publications including magazines, white papers about the food and beverage industry.
Submit RSS news feed on Retail, Shopping.
Have your feed on news, products or services displayed under this marketpalce. The feed also displayed on a full page and updated daily. Add RSS feed Now!

For unlimited press release distribution for $99 per month or $999 per year, call (281) 645-4086 or start posting your press releases online at EmailWire.com.
Copyright 2009 GroupWeb Media LLC

Shopping-NewsWire.Com ™ - Newswire and Press Release service of GroupWeb Media LLC