Benefits of Mutual Funds
Think of mutual funds as groups of people who share common or “mutual” investment goals. Instead of investing on their own, they band together, pool their resources, and let professional managers invest for them.
Mutual funds provide an ideal vehicle for new investors. They give even modest savers with just TT$100.00 the chance to have top notch expert management of their money and the opportunity to invest in a broad range of companies.
Higher Potential Returns
Investing in a mutual fund gives you the opportunity to earn higher returns than what is currently offered at other financial institutions.
Putting all your eggs in one basket can be detrimental to your financial well- being, that’s why mutual fund investment is so successful.
Mutual funds invest in portfolios of different securities. For example, a fund’s portfolio might include stocks in commercial banks, manufacturing and insurance companies among others.
If the manufacturing industry is down, the banking and insurance industries may still be doing well, therefore the fund’s overall performance may not be adversely affected by a downturn in one stock or industry.
The reasons for mutual fund’s popularity are clear but they are also beneficial because of the low minimums and accessibility.
A high sum of money is NOT necessary to start investing in mutual funds. With as little as TT$100.00 you can own a portion of a large portfolio of securities. Additionally, you will receive the same investment management that pension funds and wealthy individuals enjoy.
Access to Your Money
Generally mutual funds don’t tie up your money for a fixed period of time – you decide your investment time frame.
However, with the Growth and Income Fund (GIF) the price of the shares usually fluctuates. As such you may receive more or less than your original investment when you decide to sell.
Since you may be new to mutual fund investment, you may not have the know-it-all to successfully manage and grow you investments.
UTC’s funds are managed by professionals whose business is to follow market trends, identify attractive opportunities and manage each fund according to its investment objectives and policies.