During the course of history the development of financial markets worldwide has been a constant task to fulfill, thus creating varied and important elements such as mutual funds, which have contributed greatly in the formulation of this objective. Mutual funds can be specifically defined as heritage formed or composed of a number of specific persons regardless of whether individuals or legal entities with the sole objective of allocating such resources to investment, either public or private entity and in turn generating income from such investments. The main objective of mutual funds is the development or investment in things like stocks or bonds in order to generate participation in various bodies at once. The purchase of bonds and stocks by mutual funds is an activity that underlies most of its activities, the design of the same is done with a previous study, since one of the main qualities that the mutual fund is the investment risk analysis on a business or entity which after getting to decide the number of actions to be taken in the company, it is worth pointing out that everything depends directly on the majority or fund investors, as they decide if after investing or risk study not the capital. An important aspect to play in mutual funds is the return that they give to their investors, because the profits they produce are based to call it somehow in the sale of shares purchased at a higher economic value to which they were obtained but the success of this activity is clearly related to the stock exchange, valuing it as an entity shares its price can vary dramatically. It is very important to highlight the usefulness of mutual funds in a country's economic growth, and that by creating highly successful investor institutions have been able to achieve various economic objectives of each of the countries where they work, not to mention his Once these promote business growth directly contributing to awaken interest in other mutual funds of other countries, this will help rebalance the economy not only business but government. Like all financial movements mutual funds have certain advantages and disadvantages of the most important find some as advantages.
It is a very effective way to save money and generate revenue at a time. It has a high return. Access to a mutual fund is relatively easy, because the amount of input depends directly on ourselves. The recovery of invested funds is done very quickly. You can invest in a lot of financial fields at the same time. Disadvantages. There is some risk of a loss if investment is not known. The investor must assume certain financial costs as sales commissions, among others. The price of the shares of mutual funds is directly dependent on its assets, knowing that after the close of the stock market, contrary to the case in the case of individual investment. Although most of the advantages and disadvantages held by mutual funds, listed above are the most important to consider if you decide to participate in a mutual investment firm.