Investments in funds
A fund, e.g. B. a money market fund, describes an accumulation of assets that is attributed to the area of capital investments. Different investors pay their money z. B. with an investment or fund company to use their financial resources to generate a benefit – again mostly financial nature –.
Investors aim through the purchase of securities to achieve a return, i.e. a financial added value. The various types of funds are differentiated according to listing, intended target group, liquidity and type of investment, which should not only provide the investor with an easier overview, but also warn of possible investor risks.
Achieving returns with funds
When an investor makes a deposit into a fund, z. B. in a life insurance fund, he or she receives a share of the total fund assets in accordance with the financial expenditure. This investment allows the investor to share in profits.
As a rule, there is also the possibility to sell one’s own fund shares on each trading day at the respective selling price. The value of a share is calculated from the total fund assets, which are divided by the number of issued shares. Thus the unit value is primarily dependent on the general value of a fund assets.
The decisions about an investment falls however not the individual investor, but this is made by professionals. Their task is to increase the fund value and thus generate profits.
For whom are funds suitable?
Due to the daily availability and the comparatively smaller monetary loss risk funds are suitable for all, which would like to invest their fortune meaningfully and profitably. The market transparency and the good consulting possibilities, which make also the entrance possible for newcomers into the fund business, notice positively besides.