(Mutual Fund-How Can You Earn Money- Part02)
If you haven’t read my first article; you have missed a lot! Since, you know now the definition of mutual funds and its advantages and disadvantages (to those who have read, I’ll now discuss ‘ How Can Earn Money From Investing In A Mutual Funds’.
There are many ways:
1. Dividend Payments —Based on the number of shares owned, you will then receive a part of the fund’s earnings (distribution) minus the disclosed expenses.
2. Capital Appreciation — The value of the securities a fund’s share price may rises. When a fund sells a security that has increased in price higher than you paid for them, you make a profit called a capital gain.
3. Increased NAV — If the value of the securities in its portfolio increases (minus disclosed expenses and liabilities) thus, the value net asset value (NAV) of the fund and its shares increases.
Thank you for reading my articles. By the way, if you are interested in investing in a mutual fund. Kindly comment
Thanks and regards. Please watch my next posting.
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