How Mutual Funds Works?




This is a kind of investment which can be likened to a Public Utility Vehicle ( PUV ) particularly buses and jeepneys  in the Philippines. As an investor, you join other investor to pool your money all together  regardless of a number of their investment.Similar to riding a PUV you join other passenger in a single vehicle.

Once your investment are pooled, a trained professional who is called as fund manager of your chosen mutual fund company will manage your pooled funds by investing it in securities,stocks,money markets,bonds etc. The funds manager serves  to be your driver as he or she leads your investment to your goal which is to earn more. Like riding a public vehicle passengers hand all their fare to the driver who will lead passenger to their destination [ cont.reading…]