6 Replies to “I would want to invest in mutual funds but am not very sure how it works.?”

  1. mutual funds have a basic outline of the stocks the fund will be invested in,called a prospectus…however,the manager of the fund is driven to perform on a yearly basis,as this determines his pay…so,he constantly buys and sells,lowering the long term performance of the fund…best to research and invest directly in stocks for the long term…


  2. Most mutual funds require a $ 2500 minimum.
    There are a few that take less and a few that want more.
    There are a few that charge a load (extra cost for you).
    Stay away frome those.

    For your money, you buy shares at last closing price.
    Example : They price of a share is 15.50, so for your
    $ 2500 you get 38750.000 shares. The price of a share
    can mive up or down. If it goes up , you make money.
    If it goes down you lose money.

    You can add money or take away money at that days
    closing price.
    Then you will have to find out your risk tolerance and
    time horizon.
    If you are working, you might join a 401K
    or start a ROTH IRA.

    There are many good companies that will help you
    get started;

    FIDELITY
    VANGUARD
    TR PRICE
    AMERICAN CENTURY

    Good luck




  3. Mutual fund investment is mainly for those person which are not aware of share market but want to take advantage of it . many people invest in any fund of any mutual fund Company that fund is managed by an expert called Fund manger. Fund manger purchase share of different different company ( called portfolio of that fund in a portfolio list have share of 20 to 60 company ) all the investor of that fund is mutually owner of those shares that why it called mutual fund . ok
    As per investment u have must have PAN basically mutual fund investment is long term investment (min. 3yrs for best result ) select any diversified fund of any mutual fund Company






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