New to Investing?
Your guide to the fundamentals: understanding mutual funds, managing risk, and investing for your unique goals.
What is a mutual fund?
Plain Explanation
A mutual fund pools money from many investors and invests in a professionally-managed portfolio or assets, such as stocks or bonds.
Benefits
- Protessional management by experienced Investment managers
- Diversification across multiple secuities and markets
- Access to global opportunities with a single investment
Role in a portfolio
Mutual funds can serve as a core building block of a portfolio, helping investors pursue growth, income, or balance while spreading risk across assers and regions.
How a mutual fund works
Pooling
Investors' funds or capital is combined into one fund
Management
Professionals, known as fund managers, invest according to the fund's objective.
Diversification
Assets are spread across companies, sectors and regions.
Returns
Results show through Net Asset Value (NAV) changes and distributions. Net Asset Value (NAV) represents the net value of a mutual fund, roughly calculated as total assets minus total liabilities.
Liquidity
Shares can be bought or redeemed on dealing days. A dealing day is any business day (typically Monday to Friday) when stock exchanges are open for trading, allowing investors to buy, sell, or transfer securities.
Valuation
The fund is priced using Net Asset Value (NAV). NAV represents the net value of a mutual fund, roughly calculated as total assets minus total liabilities.
Understanding risk
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Market Risk
The value of investments may rise or fall due to changes in global markets.
Interest Rate Risk
Changes in interest rates can affect asset values, particularly fixed-income securities.
Credit Risk
The possibility that an issuer may fall to meet its financial obligations.
Which fund is
right for you?
Criteria |
Growth Fund |
Balanced |
Income Fund |
|---|---|---|---|
Objective |
Long-term capital appreciation |
Growth plus income |
Regular income generation |
Time Horizon |
Long-term |
Medium- to long-term |
Short- to medium-term |
Risk Level |
Higher |
Moderate |
Lower |
Suitable Investor |
Investors seeking growth and willing to accept volatility |
Investors seeking balance between growth and income |
Investors prioritizing income and capital preservation |
Let's match the right balance to your goals
If you're not sure where to start, we'll help you understand your options and connect you with the next right step.