Mutual funds is a great choice for people who have the capital or funds, but limited to be invested through the company’s investment manager. The funds collected by the investment manager of the community with limited capital will also be divided into several types of investments such as stocks, bonds or deposits, and not only invest in one company but a few companies.
Advantages of mutual funds compared to other investments include:
1. Complete Information
Mutual funds clearly provide the information development portfolio and costs on an ongoing basis. This is done so that the holder’s “the Unit’s” could monitor the benefits, costs, and risks at any time. As investment manager who manages the mutual fund is also obliged to announce Net Assets Value every day in the newspapers and published financial report midyear and annual prospectus also conducted regularly.
By having this information transparency, investors can also monitor the development of its investments on a regular basis. You do not need to be concerned with the State of the investments that you have because all information will be announced every day.
2. Instant Diversification
These mutual funds like a basket filled with a variety of investment. This is because a mutual fund can be invested into dozens even hundreds of stocks or bonds that are referred to as “the Unit’s”. We can reduce the risks by automatically depends not only on one investment, such as when you choose to invest in individual stocks.
So, if for example you invest mutual funds in 20 companies and 3 of them are experiencing the risk of loss, you do not need to worry because there are likely dozens of other companies may not experience loss or experienced risk gain.
3. Managed by Professional Management
Investment Manager is management professionals who have expertise in the field of management of the Fund. The role of the investment manager is also important because they serve the investors who have limited time and could not research the company and his investment directly to analyze the effects of price and access to market information capital.
4. Easily available
Mutual funds can be easily bought at any location you like directly from the financial manager or asset management companies, or through sales agents who are certified. These agents include individual, several banks, even the online mutual fund supermarket that offers a variety of mutual funds from a variety of corporate finance manager. Dealing is also very easy and fast.
5. Affordable cost
Mutual funds are indeed known as the set with a lot of financiers and professionally managed. In line with the magnitude of the ability to invest that will produce an efficient transaction fee as well. The cost of this transaction could be far lower compared to investors who invest directly in the stock exchange.
One of the advantages of mutual funds you can certainly feel that is if the level of risk of a mutual fund classified as low. This obviously provides better security for investors compared to investments made individually and directly on the stock exchange. The increase in investment funds are also not held directly by the company’s investment manager but are deposited in a special bank account known as the custodian bank.
7. High liquidity
Liquidity is the company’s ability to pay short-term obligations. The more a company has high liquidity, the company could be trusted for its ability to pay short-term obligations is also good. With high liquidity, investors can withdraw back the units at any time in accordance with statutes made each mutual fund.
In General, investment mutual funds may be used as an alternative investment option is good enough for the owners of capital are limited. With a lower risk rating, and monitoring by Managers of investment helps investors to benefit as fully as possible so many made that you can get in the future.