Investing in mutual investment funds: a reasonable investment for beginners
Mutual investment funds – a worthy object of deposits for beginners. Mutual funds include the money of a number of people in the management of professionals. Those, in turn, decide which financial instruments to invest in.
A contribution to a portfolio is called a share. Depending on the amount deposited on the hands will be one or more shares.
Basic actions with share: buy, sell or pledge. It is understood that the difference between buying or selling is the income of the investor. Mutual investment fund has a manager – a management company. Its competence includes decisions on the choice of assets and operations with them.
Some mutual funds invest only in stocks. Others are interested in bonds. There are those for which the main objects of investment is currency, precious metals or real estate. In some cases, mutual funds managers combine their assets. It is believed that the funds of inexperienced investors are invested in assets with the least risk. Qualified investors choose mutual funds with a greater probability of a major rise and fall. Each mutual fund has an investment declaration, which says what exactly the management company can invest in. Also, mutual funds have different terms when the share is bought and sold.
In particular, in open funds shares are bought (and redeemed) on any working day. Funds can be seen for several days after repayment. Interval funds mean that units are available for purchase only on specific days. Closed – this is when the money is deposited in the formation, and taken when the need for share passes.
Investing in mutual investment funds: only advantages
Many are attracted to mutual funds by a low entry threshold. However, the portfolio is managed by professionals regardless of how much money is contributed. It is also characteristic that the income from mutual funds usually exceeds the same when placing a deposit in the Bank. Open funds are attractive because the shares are available for sale almost always. Also, with this type of investment, taxes are not paid (except in cases of earnings exceeding 3 million rubles).
The shae has no fixed cost. It is constantly changing and depends on the type of assets in which the intermediary has decided to invest. The main task of the management company is the growth of the share price. Therefore, before investing it makes sense to get acquainted with the dynamics of the value of the share. Open mutual funds publish the current price every day, closed and interval approximately once a month.
Commission when buying a share comes to 5%. When selling, you may not be counted 3%, as the cost is determined at a discount. These data should also be taken into account when calculating the real amount that can be earned when investing in mutual funds.