Many people are now looking for long-term profitable investments. Mutual funds is one of investment instruments which are raising the roof. Mutual funds itself divided into four different categories, money market funds, income funds, mixed mutual funds and equity mutual funds.
In general, mutual funds are defined as a forum to collect funds from community who have money to be invested by trusted parties who manage their money. Therefore, you should choose type of mutual fund carefully to help you earn more money. Here are simple ways to earn more money from your mutual fund.
1. Products
In order to earn more money, it is highly recommended to choose the equity mutual fund. Equity mutual fund is a type of investment which offering at least 80% assets (in the form of equity securities). Although the risk higher than money market and income mutual funds, equity has the highest return potential compared to both. Equity fund is considered to provide stable returns with fairly profitable amount (for five years more less).
2. Long Term
The longer time you choose to invest in mutual fund, the bigger result you get. It simply because every single year there is fluctuation in market prices. Mutual funds are perfect for those who have a lot of future plans or at least more than five years.
3. Consistent
If you are interested in equity fund, ensure you have strong willing and mentality. Because, stock market can getting down any time, therefore you cannot immediately decide to withdraw all of your invested money. The trick is put all your invested money to the money market mutual fund, when market get stable, you can re-invested in equity fund.