Investment Guide

The most common type of mutual fund is Equity Funds. Equity fund consist mainly of investment on stocks. And equities represent corporation ownership. You might wonder how this works, right? Companies raise capital by selling stocks of the corporation, and each share of stock represents a piece of the company. While most mutual funds invest in stocks, fund managers do not just buy stocks offered to them that they find attractive. That is why an equity fund holds numerous carefully chosen stocks. Stocks are selected by the fund manager because he or she believes that these investments works toward the achievement of a fund’s stated objective which can be a long-term growth, capital appreciation, total return, or the combination of the three. Fund manager can also combine the stocks with bonds to create an investment that offers both income and growth. Read the rest of this entry »