Mutual Funds: A Professionally managed investment Fund - Legal Gyan

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Tuesday, October 22, 2019

Mutual Funds: A Professionally managed investment Fund

Mutual Funds : A Professionally managed investment Fund


Hey readers, this topic is very fascinating because in this article we're going to discuss MUTUAL FUNDS.

If you are interested in Mutual funds and wanted to invest your money in mutual funds then this is the right place you visit.
In this article, we're going to cover all the mentioned topics given below.

mutual fund
mutual fund



1. Introduction of Mutual Funds

2. History of Mutual Funds

3. Advantages and disadvantages

4. Current stage of Mutual Funds


So, let's get started

1. Introduction of Mutual Funds

Mutual Fund is said to the professionally managed investment fund. Mutual Funds pools the money to purchase securities from many investors. The investors who are willing to purchase this kind of investment fund are might be an organization, institutional or retail investors. 

2. History of Mutual Funds

Mutual Funds were firstly introduced by the people of the Dutch Republic in the year 1772-1773. The Dutch Republic faces the financial crisis in their region. This financial crisis affects their economy very badly. After that, Amsterdam's businessman named Abraham invent a policy to provide
Opportunity to diversify to small investors.


Mutual fund secondly introduced in the 1890's in the United Kingdom. In the year of 1924 United Kingdom maintains over $27 billion in total assets through mutual funds.

Now, we're going to discuss the advantages and disadvantages of Mutual funds to clarify that is Mutual Fund is suitable for you or not.

3. Advantages and Disadvantages of Mutual Funds.

Advantages

1. Diversification

In Mutual Funds, your diversification might be increase. It also decreases the risk and that's why it is said to be one of the biggest Advantages of Mutual Funds.

2. Government control

The policy of mutual funds is governed by the government. It assures the policyholder from frauds and scams.

3. Liquidity

Mutual fund provides you the daily liquidity service. This facility makes it unique because in investment the liquidity percentage is might be low but in mutual funds, you can enjoy the everyday trading facility.


Disadvantages

1. Fees

Mutual funds are the professionally managed funds. The work of managing these funds is done by its professionals and they charge fees to its holder. That's why it might be very costly.

2. Less control in profit

Mutual funds are subject to market risk here you earn a profit or suffers loss is totally depends on the market position. In an easy way, we can say that you are not assured to gain profit or loss.

So, here we saw most of the advantages and disadvantages of Mutual Funds.
Now,  we're going to discuss the current stage of mutual funds in the whole world.


3. Stage of Mutual Funds in Today's world.

In today's world Mutual Fund archives a massive success. Many of the countries invest lots of money in it.
Here we're going to see the rate of investment in Mutual funds by the whole world.

• US: $21 trillion
• Luxembourg: $4.7 trillion
• japan : $1.8 trillion and many others.

This will assure that mutual funds are accepted by the whole world and most of the country is using mutual funds to maintain their economy.

So, here we discuss all the related data about Mutual Funds. At this time Mutual Funds are counted in one of the best investment sources in the whole world.

Hope you like. 

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