Mutual funds are regarded as the best option by some investment managers. These funds may be managed by professionals and have the potential to provide the investors with high returns. Mutual fund companies invest an investor’s profit various stocks, bonds and other short-term or long haul securities. Top mutual fund companies ensure that the investors are supplied with he best possible services and options.
If your person chooses to purchase mutual funds then she or he has two options. She or he can either invest directly and purchase funds through several กองทุนบัวหลวง agents who sell mutual funds. The likes include banks, insurance companies, stock brokers and discount stock brokers. On another hand an individual may buy mutual funds directly from the mutual funds company. One major advantage of dealing directly with mutual funds companies is that there are no transaction costs mixed up in process. Unlike other mutual fund sellers, mutual fund companies do have no hidden agenda. Also, an individual does not need to be concerned about the mutual funds being loaded (that is when owners have to pay for transaction costs at first, middle or at the end of the deal).
Mutual fund companies invest the cash of investors in various stocks, bonds and equities. The combined holdings of a mutual fund are called its portfolio. Each share in the company represents an individual investors share in the funds and the income generated. So whenever a person invests in a share of the company, she or he becomes a shareholder with the mutual fund company.
In case there is profits all the mutual fund holders are supplied with dividends by the company. However, if losses occur then a shares of the company decrease in value. Mutual fund companies generally divide the funds on the basis of the danger factor involved and the fees charged for each. They generally charge more if people want to purchase high risk funds. But a higher fees does not necessarily indicate higher returns because these stocks fluctuate on daily basis. Based on the risk factor and the duration for which a fund should really be held mutual funds are generally divided in to the next types:
* Class A Stocks These are regarded as the best option if people have plans of holding the stocks for 2 or more years.
* Class B Stocks These are necessary for long haul holding of stocks. Generally small investors prefer these stocks. There is no front end fees and also the sales charge keep reducing.
* Class C Stocks These are considered best for brief term investors. Front end fees is not required in these stocks either.
Irrespective of how well a company’s mutual funds perform, certain risk factors would often be there. Before purchasing a mutual fund an individual needs to determine how much risk she or he is prepared to take. Only then should one go ahead with it.