When it comes to the financial aspects, it is important that every person must play the role of a strategic borrower, prudent investor and meticulous saver.
Any mismatch of proportions in these roles everyone must play leads to chaos in the finance aspect of life.
Let savings be your first expense every month.
Focus on savings at all points of time keeping your eye on controlling your expenses where ever possible.
Saving a minimum of 30% of what you earn every month is the key to build wealth
Learn to anticipate future commitments and separately save for each one of them in a prudent manner
Investing in an open ended investment fund
An investment fund is an institution that invests money collected from participants in various kinds of securities (e. g. shares, bonds, bonds, mortgage bonds) and property rights (e. g. real estate) in the mutual interest of fund participants.
However, funds benefit from special privileges granted to institutional investors, and the basic principle of investment policy is that potentially high returns must be achieved for the benefit of participants, with limited risk, by diversifying investments.
The investment fund in the statutes declares the purpose of its investment activity (acceptance of entrusted savings) and defines the investment strategy (in which securities and in what proportion the investors will be willing to invest), thanks to this the persons involved in the money fund know what profits can be made and what risks they can face.
An open ended investment fund may invest assets in: securities, money market instruments, investment fund participation units, bank deposits.
In order to raise funds for deposits, the fund sells shares without participation units restrictions.
A mutual fund pools the surplus savings of a number of investors who have common financial goal.
Mutual funds are managed by professional money managers, who monitors the fund's investments and attempt to generate capital gains.A mutual fund is the most suitable investment option available for general people as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively lower cost.http://fintrackindia.com/mutual-funds.html
