Many of us are thinking about investing. But what if the amount you are willing to invest is not large enough for, for example, buying real estate for further resale? A good solution is to invest through mutual funds. However, in order to make money on them, you need to know the rules of investment and carefully approach the choice of a mutual fund.
Instructions
Step 1
A mutual investment fund (MIF) is an instrument of collective investment, i.e., several (sometimes a very large number) investors transfer funds to a management company, and this company, to increase their funds, invests in stocks, bonds, real estate, etc. … Mutual funds are considered a rather risky investment method, although according to statistics they employ the best asset (cash) managers in Russia.
Step 2
The mechanism for increasing capital with the help of mutual funds is as follows: you invest in a mutual fund of your choice and wait. Your management company does the rest for you. It would seem that everything is very simple. However, not all mutual funds are good at all, in addition to making money on something (real estate, stocks, etc.), you need to understand this. Therefore, the first step of those who want to make money on mutual funds should be the purchase of investment literature. Simple textbooks on investing will do, which will explain its basic concepts (securities, management company, stock market). Also, a novice investor needs to understand the current economic situation in order to know what is better to invest in at the moment, what is growing more in price, since different mutual funds can invest the investor's funds in the securities of companies from various fields (communications, energy, public catering). As skilled as asset managers are, it is still better to control how your funds are disposed of.
Step 3
After you understand the basics of investing and the market situation, you can choose a mutual fund. Now you already roughly know what (ultimately) you will invest in. For example, these are shares of energy companies. To do this, it is worth finding (the easiest way is using the Internet) mutual funds that invest investors' funds in such shares and analyze the information that can be found about each of these mutual funds. First of all, its good reputation is important. You can find out about it by simply typing the name of the mutual fund into the search engines: information about unreliable mutual funds comes out immediately. Also important is the start-up capital from which you can start investing funds. As a rule, it is small (in some mutual funds, you can invest 5,000 rubles), but in rare cases it can be quite large (from 100,000 rubles).
Step 4
Having chosen several mutual funds, you should call each one and just talk to the managers. So you can get the necessary investment advice and once again personally make sure that this mutual fund does not make a dubious impression and is worthy of your investment.
