Posted: Wednesday, October 13, 2010 by Dave Johnson
Mutual funds are one of the best investment options today. Operated through a fund manager, a group of investors purchase diverse portfolios of stocks or bonds. The main advantage of mutual funds is that it diversifies your risk. That is to say, if Rachel has Rs. 10,000 which she wants to invest in mutual funds, she is investing that money into Company A, B, C and D, and in this way she has hedged her risk. Another advantage is that investors can purchase stocks or bonds at a much lower trading cost.
Investing / Mutual Funds