What are
mutual funds?
We often see ads and promotions of mutual funds everywhere
of people becoming suddenly rich or buying a sports car way out of their
league. You can easily get carried away by those ads. Let’s me explain what are
they?
When you invest in a specific mutual fund for a given
period of time. You are handing your money over to a group of people. These people
are highly skilled and experienced people with single aim of growing wealth. The
money you invest is used as a capital to do so. They invest the money in
stocks, forex and other assets with good return. They keep some part of the
profit and the rest is credited to your account after the given date is over. Due
to compound effect, these funds offer great returns when you invest in longer
time period.
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