Why Invest in a Mutual Fund?

    Cards (7)

    • Interest rates can be volatile

      Passive short-term investing can erode investment values due to inflation
    • The stock market has historically outperformed both short and long-term bank deposit rates
    • Not so many people are familiar with active financial management and effective diversification
    • Mutual funds
      Through them, even investors with limited resources can participate in combinations of these high-yielding investment instruments without the headache of personally selecting and monitoring a portfolio
    • Mutual funds
      • Ideal vehicles for growing money over time
      • Can be used as a savings medium for retirement, education for a child, or building up a long-term cash fund for some specific future financial objective
    • Mutual funds are also ideal instruments to augment the yields generated by organizational funds and enhance their level of diversification
    • Mutual funds have been popular investments for pension and trust programs, other employee benefit funding objectives, and institutional asset-liability matching
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