Mutual funds basics – al meezan investment management latest ways to make money limited

Mutual funds keep a team of experienced and skilled professionals latest ways to make money for the investment decision making. Team consists of dedicated fund management and investment research team latest ways to make money which analyze the performance and prospects of companies and selects latest ways to make money suitable investments to achieve the objectives of the fund. The fund manager has the experience and resources necessary to latest ways to make money follow the markets, select investments, and track their performance.

Mutual funds invest in companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks latest ways to make money decline at the same time and in the same proportion. Because of diverse range, the ups and downs of any one security have less latest ways to make money effect on the fund’s overall performance. However, though diversification can help reduce the risk and enhance the latest ways to make money stability of investment, it does not guarantee loss prevention.

As a small investor, you may find that it is not possible to buy latest ways to make money shares of companies with high share price. Such companies have low share base and high profits as latest ways to make money a result investors allocate them higher price. Mutual funds access to pool funds allow to buy securities latest ways to make money in market in every price category. Through mutual funds investors can enjoy a diversified portfolio by latest ways to make money investing as low as rs 5,000.

Because stocks are generally more volatile than other type of latest ways to make money investments, equity funds (which are usually composed entirely of stocks) may exhibit short-term fluctuation and therefore carry a higher level of risk. Investors need to be prepared to tolerate this higher risk. Equity funds could be a good investment if you have latest ways to make money a long-term perspective and can stay invested for at least three latest ways to make money years or perhaps even longer. Types of investments

Index funds that track an equity index, simply aim to mirror the return of the subject index. It must be noted that these are risky investments, since the underlying securities are usually equity securities with their latest ways to make money inherent volatility intact. However, the fund manager has no discretion on the choice of latest ways to make money security, other than to passively invest in the constituent equity securities latest ways to make money in the weightages, as found in the subject index. Types of investments

Fixed income funds are usually safer investment avenues than stock latest ways to make money funds, but maybe slightly more riskier than money market funds. As is the case with other fixed income securities, their prices and performance is heavily dependent on the level latest ways to make money and change in interest rates (and other market conditions). These are usually suitable for investors who want to avoid latest ways to make money the high volatility experienced in the stock market. Types of investments

Capital protected funds are suitable for investors who do not latest ways to make money wish to take any significant risk and are seeking the latest ways to make money potential for improved returns above those available on money market/debt funds or bank deposits. They seek participation to equity markets with the assurance that latest ways to make money their initial principal is protected or safeguarded.. Feature of capital protection is normally offered if the investment latest ways to make money is held till maturity. Types of investments

Capital protected funds give you 100% capital protection, with the potential to earn a return that is better latest ways to make money than that being offered by bank deposits or money market latest ways to make money funds/ instruments. In order to achieve their objective they may seek to latest ways to make money cash-in on any stock market upside that may be witnessed latest ways to make money during the tenure. Voluntary pension funds objective

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