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5 Advantages of Investment Funds

16th October 2023 | 8 Views

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Investment funds have five advantages as mentioned below:

1. The gains brought by the funds are, on average and in the long term, higher than those brought by bank deposits, due to the fact that the funds also invest in shares or other types of financial instruments with better gains than interest (when the economy grows).

2, The risks of the funds are lower than those of other types of investments (real estate, shares on the stock market, direct investments in a company, etc.), as the funds diversify investments to reduce risks.

3. The money invested in the fund can be withdrawn at any time, in whole or in part, without losing the earnings accumulated up to that moment.

4. Investing in a fund is a managed investment. Through a fund you have indirect access to the performance of bonds, shares or other financial instruments, without having to analyze yourself which are the best shares to buy.

5. Through a fund, you also have indirect access to a series of financial instruments that you would not normally be able to use (state securities for legal entities, deposits with interest negotiated directly with the bank) or that you could only use in certain periods and with greater efforts (bond issues).

Rajaraman K



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