The power of a mutual fund lies in its ability to pool together funds from so many different investros. Imagine a thousand investors each with P5,000 to invest who decide to pool their funds together. That is already a pool of P5 million! Now imagin that instead of just investing P5,000 each, someinvestors put in P10,000, P1 Hundred Thousand or even 1 Million Pesos. The size of the collective pool would even be bigger. And when it comes to investing, there is strength in numbers. 5 Million Pesos can gain better access to more diversified investment instruments than P5,000.
A mutual fund is a vehicle that allows investors to combine their resources. Because of this, you do not need a large amount of money to gain access to a well-diversified portfolio of top-performing investments. A mutual fund makes this possible. Here are some of the key benefits of investing mutual funds.
1. Professional Management
2. Potential Higher Returns
3. Diversification
4. Liquidity
5. Safety
Details will be on the next coming articles...
Our Source: Philequity
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