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Pros and Cons of Investing in Mutual Funds
- 1. BankBazaar.com Virudhunagar, India BankBazaar.Com Stop Applying... Start Buying...
- 2. © BankBazaar.Com. All Rights Reserved BankBazaar.Com Pros and cons of Investing in Mutual Funds: As Mutual Funds have become a very popular investment option in India. Investing in Mutual Funds has equal amount of Pros and Cons.
- 3. © BankBazaar.Com. All Rights Reserved BankBazaar.Com Pros of Investing in Mutual Funds: Easy to Buy & Sell: We can buy mutual funds in three ways: From Financial advisors , From fund companies or banks, through brokers. Professional Management : Once you invested in mutual funds, You will be alloted with a fund manager(experienced industry professionals ), he will take care of your funds and decide where to invest and other things. you need to pay your fund managers fee.
- 4. © BankBazaar.Com. All Rights Reserved BankBazaar.Com Pros of Investing in Mutual Funds: Investment Size: You can invest small or large amounts of money in Mutual Funds. Diversification: You can invest in different sectors and securities like bonds, fixed income, stocks, income trusts, exchange-traded funds (ETFs).
- 5. © BankBazaar.Com. All Rights Reserved BankBazaar.Com Cons of Investing in Mutual Funds: Returns are not guaranteed: You can't estimate how much money your fund will gain or lose. You can lose money in a mutual fund, because a fund's value depends on the value of its portfolio holdings. If the holdings lose value, you will lose fund value. Fees: Mutual Funds can be expensive to manage, You need to pay Fund manager fees and annual fees regardless of performance.
- 6. © BankBazaar.Com. All Rights Reserved BankBazaar.Com Cons of Investing in Mutual Funds: Fund Managers: Fund managers take the decision where to invest. some managers records are more successful and some managers records are not. Managers also retire, switch companies or get fired.