Return on assets
Well-chosen mutual funds - the key to successful investing.Unfortunately, in this difficult matter is no universal advice that would be suitable for each investor. But there are criteria for the analysis of which will not be mistaken with a choice of mutual fund.
Ideally, the choice of the mutual fund must begin with a statement of investment objectives. It is the determination of investment objectives will become apparent answers to the main investment issues: why to invest, how much to invest, for how long to invest, etc. Investments in mutual funds - more risky investment strategy, compared to bank deposits. Yield securities in mutual funds is uneven and constantly shifting throughout the life of the attachment.In one month it may reach 2%, other - 6%. Then the rate of return may fall and rise again. It depends on many factors. Instantaneous approximation is not necessary to wait, but if you work with the stock and bond mutual funds over a long period of time (about a year), the output is higher as compared to bank deposits, income.Now no bank willing to pay such interest, which can be obtained from mutual funds. For example, in the year before, the average profitability of open-end mutual fund shares amounted to 60-80%.And it is - not the highest. Shares are considered to be the most profitable financial instrument, but also the most risky. The law of the financial market - the higher the risks of investing, the higher the yield. And vice versa: the more secure the contribution, the lower its profitability.
Yield mutual fund - that is the criterion on which so greedy novice investors. It seems that every year the fund has shown excellent results, why, and this year it does not work just fine? Alas! The brutal statistics proves that no fund-leader does not become a leader for several years. Was in the top ten - yes, but not a leader.
Ideally, the choice of the mutual fund must begin with a statement of investment objectives. It is the determination of investment objectives will become apparent answers to the main investment issues: why to invest, how much to invest, for how long to invest, etc. Investments in mutual funds - more risky investment strategy, compared to bank deposits. Yield securities in mutual funds is uneven and constantly shifting throughout the life of the attachment.In one month it may reach 2%, other - 6%. Then the rate of return may fall and rise again. It depends on many factors. Instantaneous approximation is not necessary to wait, but if you work with the stock and bond mutual funds over a long period of time (about a year), the output is higher as compared to bank deposits, income.Now no bank willing to pay such interest, which can be obtained from mutual funds. For example, in the year before, the average profitability of open-end mutual fund shares amounted to 60-80%.And it is - not the highest. Shares are considered to be the most profitable financial instrument, but also the most risky. The law of the financial market - the higher the risks of investing, the higher the yield. And vice versa: the more secure the contribution, the lower its profitability.
Yield mutual fund - that is the criterion on which so greedy novice investors. It seems that every year the fund has shown excellent results, why, and this year it does not work just fine? Alas! The brutal statistics proves that no fund-leader does not become a leader for several years. Was in the top ten - yes, but not a leader.
The most common are open investment funds, as its shares can be sold at any time.
By law, the manager is obliged to buy a share at current value, and therefore can not be a situation where the customer refused to pay the money. The law on mutual funds stipulate that the maximum transfer of money after the payment of shares not exceeding 15 days. There are also market risks - when the profitability of the units did not always meet expectations. The task of shareholder - to identify mutual funds, which bring up to a long period of income, adequate indicators of risk. After the increase in value of shares they can sell. Fund performance is expressed as a percentage increase in unit value. Naturally, the analysis and evaluation of mutual funds with no return anywhere, but you can not build it to the rank of an absolute criterion and make decisions based only on the profitability of funds. After all, as it is written everywhere in small print: "Yield shown Fund in the past is no guarantee that the same rate of return will be shown in the future."
Investment plan for each potential shareholder, above all, should provide the expected yield under the existing investment risk.Because, as a rule, each investor their shares is just waiting for income, and if the selected mutual fund shows over a period of loss, the shareholder is not ready for it and begins to give up on mutual funds as a way of augmenting savings.
Investment plan for each potential shareholder, above all, should provide the expected yield under the existing investment risk.Because, as a rule, each investor their shares is just waiting for income, and if the selected mutual fund shows over a period of loss, the shareholder is not ready for it and begins to give up on mutual funds as a way of augmenting savings.
