subject: Mutual funds for New Investors [print this page] Mutual funds for New Investors Mutual funds for New Investors
If you are new in the investment market, you could find it quite challenging because there are more than enough option available in the market for the investment of your precious money. Mutual funds are considered as the best option for the new investors since they can easily start the investment with the minimum amount of capital, at least risk and they can easily find the experts to work on their portfolio for giving them the best option to successfully earn.
New investors don't have much knowledge about the investment market, but they just want to reduce the risk of losing their precious money and they always wants to earn maximum profit by investing high amount of capital. So, if you are a new investor you can prefer to invest in the mutual funds. You can get every kind of information from the manager involved in the investment decisions.
There are numerous kinds of mutual funds available in the market. However, it depends on the investor that he is interested in what kind of investment. Several kinds of mutual funds have different policies and offer various features. The different mutual funds includes: money market, balanced funds, exchange traded funds, specialized funds, growth funds, taxation funds, open end and closed end.
Being a new investor in the market it is not necessary that you have full knowledge about several mutual funds. So, it is always advised to have some knowledge about these and then you can try investing in them. We have provided a small presentation of closed end markets so you could have a outer look on the mutual fund market. For raising the funds, share are promoted by the companies for the public in closed end funds. Investors who are interested in investing their money can buy the shares which are promoted by the company and it creates an IPO (Initial Public Offering). If you are the new investor of these shares you are free to trade them in secondary market if the company has raised the capital.
You can buy the closed end funds through the stock exchange at the discount rate which is considered to be twenty percent and you can earn easily earn profit from them by selling them at maximum price after the certain amount of time. These investment schemes generally consist of long term but they always provide you with high rate return after the certain time. Close end funds could found complicated by the starters because of the changing trend of the stock market. It is advisable for new investors to gain all the information regarding these mutual funds before investing any of your precious money because high risk is involved in spite of good return in these mutual funds.
In UK and US, closed end funds are regarded as one the popular option for the investment schemes by the people. Some people have very positive opinion about the closed end funds investment schemes and they say blocking the money is not only the alternative you can withdraw the amount when you get the equal amount of capital deposited. However, at last its your decision about the investment, if you are comfortable with the long time investment, then closed end funds is not a bad choice for you.
But it is always suggested to get all the details about any investment in which you are going to invest your precious money. Just go through the policies and details about the withdrawal method, how to merchandise the particular mutual funds so that your money keeps increasing. All this kind of investment helps you to invest the money in the mutual fund as the new investor
