Investing in mutual funds has long been a popular choice for individuals looking to diversify their portfolios, achieve consistent returns, and navigate the complexities of financial markets. In Singapore, a robust investment environment, paired with a wide range of mutual fund options, provides investors with opportunities to grow their wealth across various asset classes. However, with so many funds available, making the right choice can be a challenge.
Understanding Mutual Funds
A mutual fund is a pooled investment vehicle where many investors contribute money, which is then managed by a professional portfolio manager. The pooled funds are used to purchase a diversified portfolio of securities, such as stocks, bonds, or other assets.
Mutual funds are designed to make investing accessible to a wide range of individuals, offering diversification even with small investment amounts. Investors hold units in the fund, and the value of their units fluctuates based on the underlying …