This article is the continuation of my journey in learning about financial management.
I started investing in mutual funds 3 months ago, that means I am a beginner as far as investment is concerned. So why mutual funds ? It can be a lot easier when you are investing in mutual funds than buying and selling individual stocks and bonds on your own. This is an advantage specifically to most of us (OFW or not) who has no time to focus on buying and selling stocks through stock market. Aside from that, you can sell your stock shares whenever you want.
Are you willing to invest now? Here’s what you need to know. First, learn about what is mutual funds, know the different types of mutual funds and of course do not forget your goal why do you want to invest in mutual funds.
It is important that you have at least an ample knowledge and understanding with the investment you are putting in.
I have listed here the different types of mutual funds as per the Sunlife website:
There are four basic types of mutual funds currently available in the market categorized according to the investment objective of the fund or the investments that the fund is primarily invested in.
Money Market Funds invest purely in short-term (one year or less) debt instruments.
Bond Funds invest in long-term debt instruments of governments or corporations.
Balanced Funds invest both in shares of stock and debt instruments.
Stock Funds / Equity Funds invest primarily in shares of stock.
I hope this will help you identify the type of mutual funds you would like to invest your money, time and effort in.
Additionally, here are my personal recommendations to beginners in mutual funds investment:
The above list was classified and sorted according to its risk rating.
Investing is better than saving. Save not to save but to Invest.