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Why might one invest in mutual funds?

Updated: 8/20/2019
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10y ago

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One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.

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Q: Why might one invest in mutual funds?
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Related questions

How can one invest in Green mutual funds?

By logging into their websites, and buying stocks you can invest in them. By searching Green Mutual Funds online, many websites allow you to invest into this, making it very easy to get hold of and invest your money into it.


Where can I buy mutual funds online at?

There are several sites that offer information about mutual funds available. One of the best is www.mint.com/invest/mutual-funds/. It is a free site that tells what a mutual fund is & how to buy or sell them online.


Do mutual funds offer an opportunity to invest in a variety of securities rather than just the one or two you might be able to afford as a single investor?

True


How can someone invest in Mutual funds?

One can invest in mutual funds directly from the fund AMC, or indirectly through the use of agents. Investing directly means you don't have to share any earnings with the agent, but it also means you need to do more research on the funds you wish to invest in. Investing indirectly means the agent will receive a cut of the profit, but they also find funds within your specifications.


Where can one invest mutual funds online?

Fidelity, American Century Investments, and Scottrade all allow online investing in mutual funds. According to Wikipedia, Fidelity was also the 2nd best mutual fund as of Octoboer 2011 (preceded by Vanguard).


Where might one find information about aggressive growth mutual funds?

One might find information about aggressive growth mutual funds from one's local bank or investor group. Online there are various sites which explain what aggressive growth mutuall funds are.


How do you invest in mutual funds and get best mutual fund returns?

No one person could decide on the 'best' mutual funds to invest in, as different companies offer different incentives for consumers to invest into their businesses which would appeal to other types of people.


How do you choose a mutual fund?

A mutual fund is an investment vehicle with a well defined, easy to understand investment strategy and goals. People choose mutual funds that match their own financial goals in a diversified way. In many cases it is possible to match individuals investment goals with just one mutual fund. In other cases, people use several mutual funds. If many funds are bought, none of the funds is usually a strategy match by itself. It is the synergy of the funds that makes the trick. Mutual funds range by the security type: there are bond funds that invest in bonds, stock funds that invest in stock and blend funds that invest in both in a pre-determined proportion. Of these, bond funds are less risky and stock funds are most risky. At the same time, historically stock funds offer more attractive return figures. Therefore one needs to establish a financial strategy first. A financial strategy varies with goals, time-frames of investments. Balancing risk and return is key to achieve investment goals faster. Only after the strategy is established one selects appropriate mutual fund or funds.


How does hedge fund differs from mutual fund?

Hedge funds and mutual funds are both managed portfolio in which securities are picked by a fund manager. However hedge funds are more aggressively managed as compared to the mutual fund. They can take speculative positions in the derivative securities .Hedge funds also differs from mutual fund in their availability, they are available to only specific investors .There are many investment companies that invest in hedge fund and mutual fund of which Reliance mutual fund is one of the good one.


How does one invest in vanguard funds?

Vanguard is an investment company with a wide range of investment options. One could invest in mutual funds, start an IRA, or open a brokerage account. All of this can be done by calling their toll-free number or by visiting their website.


What is one of the following annuities can individuals choose to invest purchase payments from a range of investment options which are typically mutual funds?

variable annuity


How can one invest in municipal bond funds?

To invest in municipal bond funds, you can open an account with a brokerage firm or mutual fund company that offers these funds. Choose a fund that aligns with your investment goals and risk tolerance. Then, you can invest by purchasing shares of the fund either directly through the company or through a broker.