Mutual fund investing is like planting a tree, it will not grow big in just a day, a week, or a year. But. You have to wait for several even decades to be able to enjoy it. Be patient, and keep investing to enjoy a beautiful retirement. Meanwhile, you can also check out brightretirement.co.uk/ to find various financial services for your retirement plan.
Mutual funds are not only offered in a single product variant but a lot. Noted, the types of products that include:
Money Market Mutual Funds
Mutual funds will place your funds on deposits, national bank certificate, and bonds. The maturity of less than one year. Mutual funds are relatively more secure than other mutual funds, but the potential benefits are relatively small, but slightly above the deposit.
Fixed Income Fund
Mutual funds will make your funds allocated to bond products at least 80%. The profit potential is higher than the money market mutual fund of more than 10% per year.
Protected Mutual Funds
A protected fund will place some of your funds into a bond instrument. This mutual fund has 100% protection on the principal amount of the investment if it is disbursed in accordance with the specified time period.
Mixed Mutual Funds
Mixed funds allocate your funds in various financial instruments, such as deposits, bonds, and stocks. Because it can invest in stocks, these mixed mutual funds are becoming riskier. However, the profit potential is higher than fixed income mutual funds.
Stock Mutual Funds
Mutual funds will place your funds at least 80% into stock. Thus, the potential benefit is the greatest of the other mutual funds. Unfortunately, the value of this mutual fund risk is also greatest.