Investment 101

What you need to know about Mutual Funds

By September 14, 2020 No Comments

What you need to know about Mutual Funds

What is a Mutual Fund?

A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets.

 

What does a mutual fund give investors?

Mutual Funds give small or individual investors access to diversified, professionally managed portfolios at a low price.

 

How are mutual funds categorized?

Mutual Funds are divided into different types of categories, showing the kinds of securities they invest in, their investment objectives, and the types of returns they seek.

 

Advantages of Mutual Funds

 

Diversification – Helps an investor mix various investments and assets within a portfolio to reduce risk and improve returns.

 

Easy access – An investor can buy or sell mutual funds with ease, making them highly liquid investments.

 

Cheap access to various assets – A Mutual Fund having pooled money from many smaller investors, can invest in certain assets or take larger positions than a smaller investor could.

 

Professional fund management – A big advantage of mutual funds is that you don’t have to pick stocks and manage your investments. Instead, a professional investment manager like ARM Investment Managers takes care of all this using careful research and skillful trading.

 

Variety to pick from– Mutual funds provide investors with opportunities for foreign and domestic investment that may not be directly accessible to ordinary investors.

 

Transparency – Mutual funds abide by industry regulation which ensures accountability and fairness to investors.

 

Types of ARM mutual funds:

 

ARM Money Market Fund

 

The ARM Money Market Fund is a low-risk investment that offers a higher interest rate on your savings than a traditional savings account.

Key Benefits:

  • Capital Preservation.

  • Quarterly interest payments.

  • Competitive interest rates.

  • Expert fund management.

  • Quick access to your money.

  • Multiple & convenient payment options.

ARM Fixed Income Fund

The ARM Fixed Income Fund is an open-ended, low-risk mutual fund designed to help you achieve your medium to long term goals.

 

Key benefits:

  • Access to a diversified portfolio which provides a more stable source of income.

  • Capital preservation

  • Affordable

  • Easy Investment tracking online.

  • Multiple & convenient payment options.

  • Expert fund management.

ARM Eurobond Fund

The ARM Eurobond Fund is an open-ended fund that invests in US Dollar-denominated Eurobonds.

Key benefits:

  • Competitive returns compared to the average domiciliary deposit account.

  • A good opportunity for diversification

  • Professional management with a robust risk management framework

  • Long term capital growth

  • Online access to your fund’s performance and investment portfolio

  • Investment can be used as collateral for loans

ARM Discovery Fund

The ARM Discovery Fund is suitable for investors who want high capital growth over the long term to meet various objectives such as paying for education, buying a property, or leaving a legacy for loved ones.

Key benefits:

  • Long term wealth growth with returns above inflation.

  • Multiple returns through capital appreciation and dividends.

  • Easy Investment tracking online.

  • Multiple & Convenient Payment options.

  • Expert fund management.

ARM Aggressive Growth Fund

The ARM Aggressive Growth Fund invests primarily in equities and as such seeks to provide superior long-term protection against inflation to investors with a high-risk appetite.

 

Key benefits:

  • Long term wealth growth with returns above inflation.

  • Multiple returns through capital appreciation and dividends.

  • Easy Investment tracking online.

  • Multiple & Convenient Payment options.

  • Expert fund management.

ARM Ethical Fund

The ARM Ethical Fund is an open-ended mutual fund suitable for Islamic investors who want long-term capital growth by investing strictly according to the principles of Islamic finance and ethical values.

Key benefits:

  • Expert fund management.

  • Easy Investment tracking online.

  • Achieve long-term capital growth.

  • Invest in accordance with core Islamic values and beliefs.

  • Multiple & Convenient Payment options.

 

Who manages a mutual fund?

Mutual Funds are operated by professional fund managers like ARM Investment Managers, who distribute the fund’s assets and work to produce income for the fund’s investors.

 

 

Need professional financial advice on mutual Funds?

Our expert financial advisors can help you decide which mutual fund to pick based on your goals, risk appetite, and expected time horizon. Reach us today via [email protected] or call 07002255276

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