An Investment in a Mutual Fund and its Goals - Article Example

Only on StudentShare

Extract of sample
An Investment in a Mutual Fund and its Goals

A mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, or other securities.
While investing in mutual funds, there can be a variety of investment goals and their options. Mutual funds have their own goals also, therefore it is imperative for an investor to make sure that the fund's goals align well his/her own goals.
Apart of making huge amount of money in a very quick period, the most common investment goal which also is in accordance with my planning is saving for the life after retirement. This goal requires a certain portion of earnings to be saved and invested on a periodic basis. Since majority of the mutual funds offer retirement plans, which also are secure plans, I look forward to invest my money in these plans as my tiny periodic investment installments will add up and grow into a healthy and substantial sum after the agreed time span. Hence, I will make investment in a mutual fund company that offers and works with balanced or index funds.
Download paper


Establishing realistic financial goals is an essential first step toward successful investing, and understanding the investments best suited for helping while achieving these goals is also equally significant. While investing, perhaps the most important step is to determine the reasons and the goals needed to be achieved at a later stage…
Author : verniemckenzie

Related Essays

Mutual Funds: Equity, Bond, and Money Market Varieties
The precise nature of the gain or loss, whether ordinary or capital in nature, depends upon the nature of the underlying investment in which the fund participates. The main concept, in short, is that individual investors pool their investments through the larger investment vehicle known as a mutual fund....
10 pages (2510 words) Essay
Investment theory and property diversification
The purpose of having all four-asset classes represented in your portfolio is to take advantage of the different strengths of each class. However, stocks are grouped together because they would, as a group, react more alike than any of the other three classes. The same thing is true for the other three classes. Many people use Real Estate Investment Trusts and other liquid investments to satisfy the real estate leg of the asset class tool. The term investment closely relates the meanings in business management, finance and economics, related to saving or deferring consumption. People usually...
5 pages (1255 words) Essay
Mutual Funds
similarly we can outline the concept of bonds. Bonds gives people chance to lend our money to the government or a company. We receive interest and principle back over pre-determined amount of time. We can say that bonds are the most common lending investments traded on the market. Other than shares and bonds there are other types of investments like real estate and precious metals but it is generally perceived that mutual funds mostly invest in stocks and bonds....
8 pages (2008 words) Essay
Mutual Fund
These open ended funds are still hailing the demanding curse of present age....
12 pages (3012 words) Essay
I also aspire to become a successful individual by earning due recognition as an expert in the field in which I'm passionate. And in order to prepare myself for a successful career ahead I have set for myself, some goals which I intend to achieve in due course....
2 pages (502 words) Essay
Evolution and growth of Mutual Fund in India
As a result, the popularity of the mutual funds is limited to big towns and cities i.e. the places outside the metropolitan area are yet to be fully tapped by the industry. A significant portion of the country’s population lives in these areas. It is important that the mutual funds target this section of investors if it has to raise the profitability margins. This can help the industry to penetrate into the unexploited markets in the country. If the industry can reach out to the wider audience then this give a significant boost to the growth and development of the mutual funds in the...
65 pages (16315 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!