Author Box
Articles Categories
All Categories
Articles Resources

Ways To Make Money Through Mutual Fund Investments

May 30, 2012 | Comments: 0 | Views: 212

Mutual fund investments can give investors high returns when they succeed in choosing the best funds. The best mutual funds are those that facilitate diversified and multiple stocks purchase, which is sure to give the investors considerable high returns. The main aim of offering multiple stocks is to reduce the investors' risks of losing money. These fund investments can enable its investors to enjoy high returns since there are four ways in which they can make money.

Ways to Make Money through Mutual Fund Investments

Firstly, you can make big bucks through the dividends obtained from investments made via purchase of stocks. You can hold the stocks' dividends up to three years and receive every cent when you choose to close your investment, by distributing them among other new investors.

Secondly, the capital gain that the fund receives from selling securities is distributed among its investors. When you are an investor you end up getting a part of the distributed share of this capital gain.

Thirdly, when your fund's share has not been sold in the market for a while by your fund manager, you can sell your own funds for a reasonable profit.

Finally, if you choose to widen your shares, these funds can allow you to make an investment again by buying more shares. It is not compulsory for you to sell and distribute your shares.

Reasons why Mutual Fund Investments can give You High Returns

The main reason why these fund investments can give you high returns is because they are managed by professionals. All you are required to do is to make your investment and relax, the well trained professionals will buy stocks on your behalf and constantly monitor it for returns. You can sell your stocks and convert them into cash whenever you require.

Another reason is the multiple stock investments option. This allows the diversification or spreading out of risks and thus, increasing the chances for you to receive higher returns. The chances of possible loss in one stock can be nullified through returns from the other stocks.

Since these funds are always sold in bulk, the money you lose as individual security transaction charges is minimal and will usually not affect your total return amount a lot. The procedure to make investments are very simple, hence, it is possible for you to invest every month and widen your chances of getting higher returns.

Wayne is an expert commentator on Mutual Funds and Mutual Fund Investment Opportunities. For more information on Index Funds, Exchange Traded Funds, and Tips on How to Invest Using a Mutual Fund Calculator, please visit

Source: EzineArticles
Was this Helpful ?

Rate this Article

Article Tags:

Mutual Fund Calculator


Mutual Fund Investments


Mutual Funds


Best Mutual Funds





Forex dealing is dealing in currency trading and basically includes dealing in foreign exchange while the stock market dealing is the dealing of stock in a standard market market. The two types of

By: Anil Mali l Investing > Stocks l October 25, 2012 lViews: 243

Investments in silver metal can be done by several ways. The article talks about the best ways of silver investments. Silver, the precious metal has always attracted investors for several reasons.

By: Kyles Humphrey l Investing > Gold Silver l August 17, 2012 lViews: 304

The article offers reasonable reasons for high oil prices. Crude is indispensable and it is a great source of energy. The prices on oil keep on altering, sometimes it is too high and sometimes it

By: Kyles Humphrey l Investing > Stocks l August 17, 2012 lViews: 286

Many investors are unaware of new tax that will be levied as part of the Supreme Court’s decision to uphold President Obama’s health care reform. The investment tax, as it is being referenced,

By: Ben Esget l Investing > Retirement Planning l July 17, 2012 lViews: 405

A few months ago, I was at Starbucks talking to someone about stocks and bonds, he and his wife had worked hard and were worried about the stock market. They wanted something much less risky. He

By: Lance Winslow l Investing > Stocks l July 11, 2012 lViews: 433

The first step in the risk management process is to acknowledge the reality of risk. Denial is a common tactic that substitutes deliberate ignorance for thoughtful planning.

By: Lawrence Tepper l Investing > Retirement Planning l July 10, 2012 lViews: 240

According to financial experts, mutual funds shouldn't be selected merely on the basis of past performance and fundamental analysis of indices. First of all, you need to understand that investments

By: Shabbir Bhimanil Investing > Mutual Fundsl June 16, 2012 lViews: 189

Mutual funds are a type of certified managed combined investment schemes that gathers money from many investors to buy securities. There is no such accurate definition of mutual funds, however the

By: Vaibhav Bhadangel Investing > Mutual Fundsl June 06, 2012 lViews: 222

Past performance isn't a proper indication of future overall performance. A poor-performing fund which had massive deficits in one year shouldn't be considered to do similarly in the subsequent year,

By: Alisia Matthewsl Investing > Mutual Fundsl May 25, 2012 lViews: 192

In case you are wondering if there are risks in investing, the answer is yes. Although investing in a cash ISA involves little risk, there are higher risks involved with regards to stocks and shares

By: Gert Hael Investing > Mutual Fundsl May 22, 2012 lViews: 203

There are many advertisements offering to sell you techniques labelled how to make money the easy way but the experts know that these get rich quick schemes are a sham; just a way to separate any

By: Jack Ritchiesl Investing > Mutual Fundsl May 21, 2012 lViews: 346

Putting your savings or capital in investments in stocks and shares is subjecting these to a certain amount of risk. Investments fall and rise and can go either way, so you may end up having less

By: Gert Hael Investing > Mutual Fundsl May 03, 2012 lViews: 246

12 month payday loans are for those emergencies that you may come across when you do not have sufficient money saved up to meet unexpected expenses. Due to the nature of the emergency, it might not

By: Wayne A Gormanl Finance > PayDay Loansl June 10, 2012 lViews: 158

Discuss this Article

comments powered by Disqus