A Glance of Mutual Funds
Mutual Funds is a container for a group of investors to collect their funds collectively to be invested into a portfolio of securities (usually stocks or bonds) for a specific investment objective. Mutual Funds are managed by the Investment Manager and administered by the Custodian Bank. Mutual Fund is the right choice for investors, because the fund is managed by a professional investment manager. In addition, investors are given the opportunity to diversify their investments thus greatly reducing the risk compared with investment in stocks.
Understanding before buying Mutual Funds
Before buying the Mutual Fund, first,the investor should read and understand the prospectus,such as the purpose and duration of the investment, to able to identify the risks and to know the performance of Mutual Funds. He/ She has to know the inherent costs on the investment. The mutual fund is not a banking products or guaranteed products by government nor investment product with the guarantee.
The contents of the Prospectus and other offering documents is not a suggestion, both in terms of business, law, and taxation. Therefore, prospective Unit Holders are advised to ask for judgment or advice of the competent parties in connection with an investment in the Fund.
The prospective Unit Holders should be aware that there are likely prospective Unit Holders will bear the risk of Mutual Funds in connection with the Participation Unit holds mutual funds.
In connection with the possibility of these risks, when deemed necessary prospective Unit Holders may request the opinion of the competent parties on aspects of business, legal, financial, tax, or other relevant aspects.