Wednesday, November 13, 2013

Which One Is Right For You? Stock Trading Or Mutual Fund Trading

By Frank Miller


A mutual fund is comprised of a wide variety of stocks that are handled for all the investors that are buying into the fund. This type of fund gives an investor the liberty to hold a diverse portfolio without the hassle of investing a great amount of money. Some may wonder why it is advantageous to hold a diversified portfolio. One reason is that it will offer the investor protection from a market that could suffer a loss from one individual stock. When a portfolio contains 20 different types of stocks, the affect of one stock loss is less than if the buyer lost a significant amount for just one stock.

No one deny the benefits of investing in mutual funds. It can help reap maximum returns over a shot span of time. One when it comes to doing business one prefers to invest small amounts and get maximum income out of it. This is what exactly a mutual fund does. This why it has emerged as a popular form of investment for ambitious investors. Mutual fund investment has earned credibility over the years and is now widely practiced all over the world. Online fund investment has recently become very popular amongst investors. This strategic investment plan has got the entire craze simply for the convenience it has to offer to its customers.

A Mutual fund is an open-ended fund managed by a reliable investment company to generate high financial returns. Here a group of people mutually form a group to make investments in stocks and shares and reap benefits together. To make a good mutual fund investment it is essential to have a good NAV. The Net Asset value (NAV) depicts the estimated value of the fund based solely on its price. Calculating the NAV before investing in mutual fund would be an intelligent decision to make.

The market of share in India has been exhibiting volatility for quite some time. It is no wonder affected by the commodity market as well. And funds are affected by the performance of stocks in India. With the sensex and nifty below the 19000 and 6000 marks respectively, most investors, especially novice investors, are confused about how to proceed. Experts never panic as they know how to swim against the tide. It is the beginners who are maximum losers. But there are few informed beginners who do gain big in the market of share in India.

One can get involved in all investment related activities independently. Simply register on the concerned website, you are good to go. One can also learn about various investment schemes and policies and upgrade his knowledge about the same.

More investment funds include 'growth funds' that try to expound on capital gain and 'income funds' that focus on the stocks that yield dividends on a regular basis. Mutual funds are a great way to invest money for a buyer who has little investment experience or not a lot of money to invest. You will have to decide what fund is right for you according to your risk comfort level and your hope for return on your investment.




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