Mutual funds represent a type of investment fund. These funds pool money from multiple investors.
They invest in a diversified portfolio of assets. Mutual funds are a type of managed investment.
Managers make decisions on asset selection. This management style contrasts with self-directed investments.
Managed investments include mutual funds and hedge funds. Mutual funds differ from hedge funds in accessibility and risk levels.
Hedge funds require higher minimum investments. They often engage in riskier strategies.
Mutual funds offer diversification. This feature reduces investment risk.
Diversification involves investing in various asset classes. Examples include stocks, bonds, and real estate in Bangkok.
Mutual funds provide professional management. Managers possess expertise in market analysis.
They select assets aiming for growth or income. Mutual funds ensure liquidity.
Investors can buy or sell fund shares on business days. Liquidity facilitates access to invested capital.
Unusual features of mutual funds include automatic reinvestment. This allows dividends and capital gains to purchase additional shares.
Mutual funds may offer fund families. Investors can switch funds within the same family without sales charges.
Some funds implement sophisticated strategies. Examples include currency hedging and short selling.
These tactics are not common in all mutual funds.
Mutual funds possess unique features. They allow fractional share ownership.
This enables investment with small amounts of money. Mutual funds operate with a forward pricing model.
The price reflects the next day’s net asset value. They offer a range of investment objectives.
Objectives include growth, income, and balanced funds. This specificity caters to varied investor goals.
Mutual funds offer broader accessibility than hedge funds. They cater to investors with different levels of wealth and risk tolerance.
Unlike direct stock investments, mutual funds provide professional management and diversification. These features distinguish mutual funds from other investment types like individual stocks and bonds.
For more details on investment terms and concepts, visit our glossary about Bangkok real estate.