Investment Funds Follow Various Investment Strategies

Often funds are 10 year closed-end funds in which it is expected that all investments will be exited and the fund wound up in

Moderate risk; mutual funds can earn significantly more money but can also potentially lose more.

• Managed growth or capital growth funds—structured to maximise the return from capital growth, that is, an appreciation in the value of the assets held. Less emphasis on income receipts. Higher risk profiles within an investment portfolio; therefore, will usually hold a higher percentage of funds in equity investments and a much smaller portfolio of fixed interest investments.

think of a mutual fund as a company that brings together a group of people and invests

Management and investors often are more interested in the return earned on the funds invested

An index fund is a conservative investment choice that generally outperforms active funds. Find out the answer to, “What is Vanguard 500?”

The funds asset allocation will become more conservative over time, meaning that the percentage of assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other fixed income investments will increase. This investment is superb for long-term investors like myself.

This money can only be used to purchase fixed assets that are needed, such as a building or vehicle.

An "index fund" depicting a kind of common fund or unit investment trust (UIT) whose investment objective ordinarily is to accomplish the equal return as a specific market index, for example, the S&P 500 Composite Stock Price Index, the Russell 2000 Index or the Wilshire 5000 Total Market Index. An index fund will endeavor to accomplish its investment objective principally by putting resources into the securities (stocks or bonds) of organizations that are incorporated in a chose index. Some index funds might additionally utilize derivatives, (for example, options or futures) to help accomplish their investment objective. Some index funds put resources into the sum of the organizations included in an index; other index funds put resources into a delegate example of the organizations included in an index.

But for others, they have invested large sums of money and lost it all. An example of growth investing would be for an investor to invest in some sort of new technology. There is a certain method that growth investors use, there are five different methods that value investors should spend time on. But even though these methods are pretty much set in stone like a mathematical equation, the investor must also compensate for the company 's current situation. This meaning that they cannot just follow this exact process and expect the outcome to be perfect, the investor will have to make some adjustments. The first method is Five-Year Earnings Figures, this method states that before all else, the investor should figure out if the company they’re investing in has been growing in the past, or is based on annual revenue. The second method is Strong Projected Earnings Growth, this method states that a company you’re investing in should have a 10- 12% minimum projected five year growth rate , and if you can find anything higher than 10-12% like 15%, that is more ideal. Next there is Costs and Revenue Control, in short this is finding out how management is maintaining margins and controlling costs and revenues by comparing the company 's current profit margins to its past

Mutual fund also offers good investment opportunities to the investors. Like all investment, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The Indian mutual fund industry has witnessed several structural and regulatory reforms.

Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by

Growth fund seems to have proved their credibility as two of the best forms of investments in today's market. Obviously this type of funds provides a lot of benefits to their customers.

160-161). Once these options are reviewed then one can make that optimal decision as to what type of investment would be the best options to choose from. Next, is bonds which is a financial instrument, that is issued by a corporation or government entity and is required to be paid back; known as an IOU. These will mature overtime and gain face value, and usually come in all types and varieties to choose from; some taking as long as 100 years to reach it maturity date. Lately, is mutual funds and EFT’s, these are securities that are held in different sectors and eliminate any form of risk compared to other investment; known as the closed-end fund or the open-ended fund. So, what is a “close-end fund, is a fixed amount of dividends in a portfolio of assets; where shares of a closed-end funds can be traded among investors much like stocks” (Kelly & Williams, 2017, pg. 163).

Welcome to the latest series of Article “FinVest” which will guide you to take your day-to-day investment decisions. In the first Article of the series we will look into the Mutual Fund Investments, the various types of mutual funds available in the Indian Mutual Fund Industry, the risks and benefits of each of them, and the current trends prevalent in the industry, some recommendations on the various offerings by the financial instruments.