A Mutual Fund can be an investment company that pools the funds of several specific and institutional traders to form a massive asset bottom. The property is then entrusted to a complete time professional fund manager who develops and maintains a diversified portfolio of security investments. Individuals who buy stocks of a shared finance are its owners or shareholders. Their buys provide the money for a mutual account to buy securities such as bonds and stocks.
A mutual can generate income from its securities investments in two ways: a security pays dividends and interest to the fund, or a security can rise in value. Any dividends are handed with the fund, interest, or revenue on the sale of its stock portfolio securities, less fund expenses, to shareholders in the form of distributions. In the Philippines, there are four basic types of shared funds—-stock (also known as equity), balanced, relationship, and money market funds. Bond funds invest mainly in bonds such as treasury notes issued by the Philippine government and commercial papers issued by reputable companies in the Philippines.
Having a complete basket of only fixed-income securities, bond money to provide capital preservation while keeping a conservative position in terms of asset allocation. Like connection money, money-market funds likewise have a conservative position since they have a full basket of set-income funds. The main difference lies in the word of investments of money market fund investments, which is one year or less.
Equity funds make investments primarily in shares of stock …