| Some Advantages
to Investing in Mutual Funds: |
Diversification
Mutual funds give the investor the ability to diversify
their investment because the fund's portfolio is made up
of a variety of different securities. |
Professional
Management
The fund employs professional managers who
analyze the markets, companies, economies, etc. to determine
which stocks to buy, how much to buy, how long to hold and
when to sell. This feature takes the guess work out
of the hands of the investor. |
Smaller amount of capital
required
Mutual funds allow investors to invest small
amounts of money on a regular basis. Instead of needing
large amounts of capital to diversify a portfolio, investors
can gradually add to their investment. |
Dividend Reinvestment
Most mutual funds allow investors to reinvest
dividends and/and capital gains automatically back into
the fund, making your investment grow. |
Exchange feature
Many mutual funds are grouped into a family
of funds (different funds with different objectives but
all managed by the same advisor). An investor can
usually switch their investment from one fund to another,
within the same family. This gives the investor the
option to switch funds if their objectives change.
|
Liquidity
You can buy or redeem mutual fund shares
as easily as you can buy or sell stocks |
| As
with all investments, it is always important to read the
fund's prospectus and consult with a professional broker
before making an investment decision. Fantasy Stock
Market does not give investment advise. |
|
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