WHAT IS UNIT TRUSTS / MUTUAL FUND

MUTUAL FUND IS A COLLECTION OF STOCKS AND BONDS. MUTUAL FUNDS BRING TOGETHER A GROUP OF PEOPLE AND INVEST THEIR MONEY IN STOCKS, BONDS AND OTHER SECURITIES. EACH INVESTOR OWNS SHARES, WHICH REPRESENT A PORTION OF THE HOLDINGS OF THE FUND.

IN MUTUAL FUNDS INVESTORS EARNED THROUGH DIVIDENDS ON STOCKS, INTEREST ON BONDS AND ALSO THROUGH CAPITAL APPRECIATION.

ADVANTAGES OF MUTUAL FUND

PROFESSIONAL MANAGEMENT:  INVESTOR PURCHASES MUTUAL FUND BECAUSE THEY DO NOT HAVE TIME OR EXPERTISE TO MANAGE THEIR OWN PORTFOLIO.

DIVERSIFICATION: BY OWING SHARES IN A MUTUAL FUND YOUR RISK IS SPREAD OUT. THE IDEA OF DIVERSIFICATION IS TO INVEST IN A LARGE NO OF STOCKS SO THAT THE LOST IN THE INVESTMENT IS MINIMISED.

LIQUIDITY: YOU CAN SELL YOUR MUTUAL FUND AND TURN IT INTO CASH ANYTIME YOU WANT.

MUTUAL FUND HAS BECOME POPULAR FOR THE PAST 10YEARS. INVESTING MEANS BUYING INTO MUTUAL FUNDS. MUTUAL FUND IS BETTER THAN LETTING YOUR CASH WASTE INTO YOUR SAVINGS ACCOUNT.