Do's and Don'ts of Money
When working and earning a monthly salary, you should never eat with your ten fingers. While buying the latest cars, houses, clothes and shoes, you should always consider that a time will come when you will be too weak and old to work, what happens then?
No matter what you do now or how much you earn, you should not only save for rainy days, you should also invest for the future. How can you do this? You can invest in mutual funds.
￼What are mutual funds?
Mutual fund is an investment of money by a large group of people. Each investor owns shares of the mutual fund, which represent a portion or percentage of its holdings. A share of a mutual fund represents investments in many different stocks (eg. SBD, ETH, BTC etc ) instead of just one holding.
So how do you benefit from investing in mutual funds?
Mutual funds are usually transparent. There are no hidden charges in Mutual Fund investments. All the required information about the fund’s holdings, performance and assets are always made available to all investors. This enables transparency in the operation and encourages investors to make informed investing decisions.
Mutual Funds offer diversification in your investment portfolio. If you want to invest in the stock market for example, investing through Mutual Funds may be a safer bet because Mutual Fund investments minimise your risk exposure.
Investing in Mutual Funds is safe. If the Mutual Fund house goes bust, the shareholders of a Mutual Fund will get a pay-out. This pay-out is a certain amount of money equivalent to their percentage of shareholdings in the Mutual Fund.
It is very important to start planning for the future early enough. You are not too young to start thinking about your retirement plan. If you begin retirement planning early in your life, when you begin your career, for instance, then you will not need to depend on your retirement money for a few decades more. That is why I am encouraging you, not just to diversify your income, but to also invest for your future.