Mutual Fund and its Goals - Essay Example

 An investment can be made in any flowing business while keeping an eye on the return on investment and risk factor. Perhaps, mutual funds are the best choice in the modern era as they possess the correct measure of the balance between return and risk factor while providing the benefits of diversification, professional management, liquidity, flexibility, convenience. A mutual fund is a form of collective investment that pools money from many investors and invests their money in stocks, bonds, short-term money market instruments, or other securities.

While investing in mutual funds, there can be a variety of investment goals and their options. Mutual funds have their own goals also, therefore it is imperative for an investor to make sure that the fund's goals align well his/her own goals. Apart from making huge amount of money in a very quick period, the most common investment goal which also is in accordance with my planning is saving for life after retirement. This goal requires a certain portion of earnings to be saved and invested on a periodic basis.

Since a majority of the mutual funds offer retirement plans, which also are secure plans, I look forward to invest my money in these plans as my tiny periodic investment installments will add up and grow into a healthy and substantial sum after the agreed time span. Hence, I will make the investment in a mutual fund company that offers and works with balanced or index funds.