A mutual fund is a type of business that is very common nowadays. It is a type of company that attracts a lot of people to invest their money as a one forming a bigger asset under the portfolio or umbrella of this single company. This individual who share money to make the mutual fund is its owners or shareholders. The money they contributed is then used to buy securities such as stocks and bonds in the market.
Investors or shareholders can earn money in several ways. They can earn from the dividends on stocks or the interest that the bond gain under a portfolio of the company. The funds are then distributed to investor or shareholders on an annual basis. They usually have a choice of whether to receive the funds in checks or reinvest this to get more earnings and profit in the future. They can also have this capital gains that is earned whenever the fund sells securities that increased its price. They can also sell their mutual fund shares in the market whenever they want to earn a profit.
One of the establishment that operates on a mutual fund is that of the American Growth Fund (AGF) Limited which is based in Toronto, Canada. It provides a wide range of investment management and financing solutions to retail, high-end clients, and different institutions. It operates in Canada, US, UK, Ireland and some part of Asia. It is managed by the famous businessman blake goldring. He attended his college at the University of Toronto where he finished Economics with honor degree. At the moment AGF is worth $35 billion thanks to his very good management of the business.
Why Invest In Mutual Funds?
1. There is specific professional investment manager that manages the fund through research and trading skillfully in different business opportunities.
2. When you own mutual funds, the risk of losing your money is lowered because it is diversified into many other businesses. Large mutual funds such as AGF have lots of stocks in different industries.
3. Mutual funds are also very transparent and they can make sure that there is equality among investors and that they are accountable. One very good example of transparent company is that of AGF Limited