UNDERSTANDING MUTUAL FUND INVESTING

These are some terms of undertanding mutual fund. We need to consider many factors before investing in mutual fund because there are corresponding risks.

• MAGIC OF COMPOUNDING it is simply combination of time and rate of return.
• LONG TERM PERSPECTIVE we realy can't forsse our ecoomy. Everyday there is changes in our economy.
• STOCK'S PERFORMANCE in mutual funds, stocks are also involved. Stocks returns are driven by 2 factors: dividends and earnings.Dividends and earnings are vital important stock returns because share of company stock is also represent your share in business.
• TOTAL RETURN RISKS ON COMMON STOCKS most widely accepted measure of the risks in any financial asset is the return of total assets.