Shares or mutualfunds where to invest?

how i can spend my money shares or mutualfunds

A mutual fund is a diverse holding of stocks that are managed on behalf of the investors that buy into the fund. A mutual fund allows an investor to take advantage of a diversified portfolio without having to invest a large sum of money.

What is the advantage of a diversified portfolio? It offers protection against rapid market losses of any one particular stock. If a portfolio is spread across 20 stocks, if any one of those stocks quickly loses value the effect is less than if the portfolio consisted of that one stock by itself.

When investing it is always a good idea to diversify. The problem for small investors is that they often don't have the funds to buy a variety of stocks. Mutual funds allow small investors to benefit from diversification with a small amount of money.

Besides stocks, mutual funds can be made up of a variety of holdings including bonds and money market instruments. A mutual fund is actually a company and investors that buy into a fund are buying shares of that company. Shares in a mutual fund are bought directly from the fund itself or brokers acting on behalf of the fund. Shares can be redeemed by selling them back to the fund.

Mutual funds are often a better choice for the small investor than either stocks or bonds. They offer the diversity that provides cushion against sudden stock market movements and usually provide a greater return than bonds. Of course, mutual funds can also lose value, especially in the short term, so short term investors may be better off with bonds which offer a set rate of return.

Stock funds usually have the greatest potential for profitable investment but also carry the greatest risk. The risk is more for short-term holders of mutual funds â€“ stocks have traditionally outperformed other investment instruments in the long run.

Mutual funds are an ideal investment for those with limited funds or investment experience. Choosing the right fund is a decision on how much risk you are willing to take against your expected return on your investment.

pick up a couple of books on investing.......it is your money...........
if you think the market is going up.buy an index fund(like QQQ).if you think it is going down, buy a cd

Invest in MF: As the prices of mutual funds change daily, finding the best performing funds can be quite tricky. In case of normal stocks and securities, you often track the prices. But for the mutual funds, it is better to conduct research to decide which investment company is administering the fund and the specific securities held by the mutual fund.

Selecting a mutual fund administered by an investment company with good record of selecting attractive investments is a right sign that buying the fund is a smart move and securities held by the fund have been steady performers that can increase stability and security of a risky investment.
http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html

Mutual funds are entry gates for share markets. The one who knows whos and hows of share market can invest directly. Otherwise it is vice to invest in Mutual funds where there are experts to do your job.

It depends on your risk taking capacity, your age, your financial goals. If you are young and ready to take risk and have long term view, then invest in fundamentally good stocks, u shld also consider market scenario and sectors which are hot. Regular analysis is necessary, if you don't have time, not able to take risk and above 45 then you shld opt for MFs. Here too analysis and research is IMP, not all funds are performing well, fund manager plays imp role, you should also consider whether MF is diversified, sector specific or debt fund, so as per u r risk taking capacity u can invest in various funds, Normally diversified equity fund backed by good fund manager gives good returns in long term. Information abot MFs is available on various sites. Pls go thru it , then invest, have a 5 yrs view and opt for SIP to average u r unit cost.

If you have a good risk bearing capablility, then you can go in for shares. If u want to play safe, u can choose low risk mutual funds.

If you are ready to take risks(aggressive investor), go for shares. If you are a risk-averse then invest in mutual funds. Both are good.

Enter Your Message or Comment

User Name:
User Email:
Post a comment:

Archive: Forum -Forum -Finance - Links - 1 - 2 - RSS - All RSS Feeds
The Causes and the Results. 0.084
Copyright (c) 2011 Financial Crisis Monday, May 28, 2012 - Terms of use - Privacy Policy