Mutual Funds: The Mutual Fund Retirement Plan For Long - Term Wealth Building
Adidas Wilson
Adidas Wilson
Ebook
44
Pages
family_home
Eligible
info
reportRatings and reviews aren’t verified Learn More
About this ebook
Mutual funds have become popular among investors and they are easy to understand. They offer benefits and simplicity to investors with limited money, time, or knowledge. If you are still undecided about whether mutual funds are great for you, check out these advantages. Asset diversification is a key rule of investing for small investors and large ones. Diversification is the combination of various types of asset classes and investments within a portfolio. It helps in managing risk. To have a diversified portfolio, it is wise to purchase stocks that have different capitalization from various industries as well as bonds with different maturities from various issuers. This strategy may be costly for an individual investor. When you buy mutual funds, you get the advantage of instant asset allocation and diversification without the high cost that you would have incurred when creating individual portfolios. The downside to this is that a single mutual fund may not provide you with enough diversification. Check whether the fund is industry or sector specific. For instance, if you invest in a certain sector, you may have your money spread over multiple companies. However, if that sector falls, your investment may suffer. To understand economies of scale easily and quickly, think of volume discount; the more of an item you purchase, the cheaper it becomes. The same applies when buying and selling securities. Buying a single security at a given time will see you pay higher transaction fees. Mutual funds lower their investors’ transaction costs by taking advantage of selling and buying volume.
About the author
Adidas Wilson was born in Chicago, Illinois, surviving a near death experience driving off a bridge in an 18 wheeler and getting hit by a train. Adidas has dedicated his time and effort to educate, motivate, and inspire people around the world to make positive lifestyle changes. Adidas enrolled at the University of Phoenix graduating with a bachelor's in Healthcare Management. Also studying Health care Informatics - Master Degree program at Lipscomb University. Amazon Best Seller's List and mentioned in Entrepreneur Magazine.
Rate this ebook
Tell us what you think.
Reading information
Smartphones and tablets
Install the Google Play Books app for Android and iPad/iPhone. It syncs automatically with your account and allows you to read online or offline wherever you are.
Laptops and computers
You can listen to audiobooks purchased on Google Play using your computer's web browser.
eReaders and other devices
To read on e-ink devices like Kobo eReaders, you'll need to download a file and transfer it to your device. Follow the detailed Help Center instructions to transfer the files to supported eReaders.
