How it is correct to invest the income in mutual fund?
Anyway, but all of us want more money. And when there is on hands a certain free sum, this emergence is frequent is followed by vague desire “where - nibud to enclose“. Promoting mutual fund in our country made the business, even more often people pay the attention to this form of investment. Often the first investments - are silly and are not always successful.
The mistake of the beginning shareholders is that they strain to be in action without preliminary investigation. Sometimes having an idea, very far from reality, about mutual fund.
the Instruction to future shareholder
mutual fund is not the deposit, not an action. Purchase mutual fund does not guarantee this or that percent of the income and does not bring dividends. Mutual fund - not a way of fast speculative earnings.
Mutual investment fund - an opportunity to keep and increase the capital with the risk directly proportional to profitability.
- buying a share, it is worth understanding that this long-term investment and not to try to sell it at the slightest advance in price;
- the price of a share can fluctuate; panic at its falling is lower than the level of purchase - is inappropriate; Mutual fund for people with strong nerves.
the Clear idea of costs will allow to avoid disappointment
Profitability of mutual investment fund is not equal to the income of the shareholder. There are also internal costs: the commission of management company, a discount and extra charge upon purchase and repayment of shares, a manipulation shares, services of the auditor, etc. It is better not to be ashamed and take out soul from the consultant, than to understand following the results of a year where the promised profit got to. The general difference in profitability of fund and the shareholder can reach 10%. It is not so notable if the general profit makes 30 - 40% and more, but is extremely offensive for those who did not want to risk and preferred to provide a small, but reliable gain.
Instruments of decrease in investment risks - are universal
So - work also about mutual fund. That is it is optimum - to form the shares according to the principles of creation of the effective diversified portfolio of investments, having chosen the most comfortable option of a ratio of risk from the psychological point of view and profitability.
Diversification of means even in branches with a high share of risk at the correct selection of shares will allow you to sleep peacefully until the market increases your capital.
the Correct assessment of market prospects - the key to success in any investments
to Estimate prospects of this or that area by means of studying of brochures, orientations on previous years and councils of acquaintances is a method of “a manual tyk“. Equally well it is possible to tell fortunes on a coffee thick and to look through dream book. Of course, it is the simplest to trust in professionals, but if you want to make independent decisions in the sphere of investment, without sharing profit with analysts - you should understand laws of the market.
And it means how bequeathed great and eternally live: to study, to learn and to study once again. To comprehend subtleties of the analysis of the investment market independently - a task like development of Japanese of the self-instruction manual: it is possible, but it is difficult. Here it is important to pick up the good self-instruction manual and to estimate practice of successful investors.
Without real practice and the help in judgment of material you risk to appear in a situation when, despite the accumulated theoretical knowledge, your “Japanese“ it is unclear because of wrong “pronunciation“.
And at last: a basis of financial success - knowledge
to gain income from anything, it is necessary to understand what you deal with. If you think about mutual fund, then before carrying out financial actions - collect all possible information. At your service the Internet, analytical editions, the financial enterprises rendering advisory services, consultants of management companies, at last. From them it is possible and it is necessary to shake all possible information if it concerns future your capital investment.
Only completely understanding and realizing an essence of this or that form of investment, you can estimate need of these investments. Invest money intelligently and be rich!