In the investment world, equity funds are one of the most popular investment instruments by the public because of the high returns offered. Even though in the investment world the principle applies that the higher the potential for return, the higher the risk. The risk of stock mutual funds is very high compared to other types of mutual funds such as mixed funds, fixed-income funds, and money market funds. For investors with a risk-taker risk profile, they often like to look for loopholes to minimize this risk rather than avoiding this type of investment. Aside from that, you can visit magodomercado.com if you still want to learn more about Como investir na bolsa.
Stock mutual funds are different from playing stocks directly. Equity fund investors do not need to intervene directly to observe stock market price fluctuations and conduct analysis. This is enough to do investment managers. But before you dive right into stock mutual funds, it would be better if we learn the ins and outs of the stock mutual funds themselves.
Here is the information for you:
Understanding Equity Funds
Equity funds have a portfolio of shares. The portfolio is managed by the Investment Manager by buying and selling shares. The results or profits obtained from mutual fund investment are the difference between the increase in the selling and buying price of the shares. Likewise, the losses are also obtained from the difference in the decline in selling and buying prices of shares.
Unlike other stock investments, equity funds can only be carried out on shares of companies that have legal entities and are listed on the national stock exchange or foreign stock exchanges. Therefore, not all companies can be bought by mutual funds. The goal is very clear, namely by listing the company on the stock exchange this will protect investors. The registration procedure is also not as easy as imagined and must pass a very strict selection by the Financial Services Authority.
Mutual fund products are safe for trading. One of the efforts made by the financial services authority to provide protection to investors is to regulate the investment behavior of the mutual fund shares.