Reaching Millions Without Spending A Sweat

(Mutual Fund definition/advantages/ disadvantages- Part01)

People have the right to have a good life and quality living. You have a choice by giving your life the options - by providing the right principles and tools; in which if figure out and applied, it would serve as guiding tools towards quality life. These become my personal advocacy in life. I’ll provide options to those people who wanted to become financially stable.

How can I provide them good options or reach millions without spending sweat? Or is there such thing? Yup! After you’ve finished reading this article you may know the answer to the question. But for at the moment, please keep on reading.

Here are many ways to achieve the financial goal; some by establishing their own business; by investing in a real state and some owe their life a chance by playing on a lottery. In this matter, one out of ten ventured in business succeeded and as to investing on a real state, the story is the same while playing lottery-one out of one million chances to win. What I’m trying to stress out is that any investment instrument you want to get in there is always an equivalent risk to it. Every person has different tolerance to risk. The person, who can manage the risks, will control the game. One risk that you may wish to consider is by purchasing in an investment vehicle that pooled from many investor in stocks, bonds, money market instrument or other securities; or most commonly known as MUTUAL FUNDS.

Advantage of mutual funds:
1. Simple> If you have a hard-earned money and you don’t know what will you do? Instead of opening an account in a bank that earn one percent per year; try to purchase in a mutual funds that can earn you as much as fourteen percent per year (not guaranteed).
2. Diversification> As include the tagline "Don't put all your eggs in one basket." In mutual fund, money is diversified based on your chosen objective. Basically speaking, diversification is used to manage risk.
3. Professional Management> When you purchase a share in a mutual fund, you are also choosing professional money managers. These fund manager manage and monitor the performance of the securities the fund purchases.
4. Affordability> For a minimum substantial amount you can have portfolio of funds. Contrary to direct investment, investors in a mutual fund can purchase a share in smaller denominations. Some mutual funds accommodate investors who don't have a lot of money to invest by setting relatively low amounts for initial purchases, and minimum additional monthly purchases. Rather than having to wait until you have enough capital to purchase higher-cost investments, you can have in right away with mutual funds.

Here are presented some of the disadvantage of mutual funds for your consideration.
1. No Control> Unlike in any investment vehicles, a mutual fund investors typically cannot ascertain the exact composition of a fund's portfolio at any given time, nor can directly persuade which securities the fund money manager purchases or and subscribe or the timing of those trades.
2. Without Guaranteed Returns> It doesn’t mean you purchased a share in a mutual fund you’ll gain positive returns, like any investments vehicles are without guaranteed return. There is always the possibility that the value of your mutual fund will depreciate or in worst case lose all of your investment.3. Past Results Are Not Indicative of Future Returns> Past performance is not a reliable indicator of future performance.

That’s all for now. Please follow my next posting. I’ll be discussing ‘How Can You Earn Money From Mutual Funds’.If you like what you have read, kindly comment here.
Thanks and regards. -Deus.