Mutual funds are a great way to diversify your investment portfolio. If you are planning to invest in them, you must first understand what they and their types are.
A mutual fund is an investment vehicle that pools money from multiple investors and invests it in securities like stocks, bonds, gold, and other financial assets.
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They carry higher growth potential. As most financial planners suggest, the younger you are, the more EMFs you should have in your portfolio.
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They are some of the most popular mutual funds, for they are a safer investment than stocks. These funds invest in government and corporate debts.
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Money market funds are fixed-income funds that invest in high-quality, short-term debt from governments, financial institutions, or corporations.
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Also referred to as asset allocation funds or balanced funds, these funds combine fixed-income and fixed-ratio investments, i.e., 60% stocks and 40% bonds.
Use mutual funds as leverage for your loan against securities at low rates. Meanwhile, earn dividends while you access an instant loan without credit check.