| Most times, you will need a professional body, an | | | | for volume discounts, reducing commission, |
| individual or a mutual fund investment firm to | | | | transaction and accountants charges. An individual |
| handle your money matters. The reason why you | | | | handling one security every time would have to |
| would need their services is because, they have | | | | pay considerable charges against his savings, since |
| experience and technical know how on handling | | | | every transaction is treated independently |
| investments. These people come in hardy when | | | | thereby lowering his profits. |
| you do not have the time or the expertise to | | | | Mutual funds come in hardy to those investors |
| manage your portfolio of bonds, shares or money | | | | who do not have large sums of money. These |
| securities. Its actually a cheap way for an | | | | people can invest in small amounts, ranging from |
| individual investor to hire the services of fund | | | | $100 to $1000. You do not have to wait long |
| manager to handle, monitor and grow money. | | | | periods of time to accumulate enough money to |
| As an individual investor on your own, you may | | | | buy a round lot of a stock i.e the normal trading |
| not manage to invest in a variety of investment | | | | unit of a security entity, usually 100 shares of |
| bonds or shares because of the documentation | | | | stock. This arrangement also comes in hardy to |
| requirements and the need to monitor the price | | | | those in formal employment and can only manage |
| changes constantly, unless you have devoted | | | | to make small monthly contributions. |
| your time for that only. A mutual fund investment | | | | Once an individual decides to withdraw the money |
| firm will invest your money in a variety of | | | | invested, the procedures involved are easy and |
| investment portfolios, such that, a loss in one is | | | | you can get your money back immediately. This |
| spread across the stocks that have gains. | | | | goes to prove that mutual funds are one of the |
| A Mutual fund firm buys and sells large amounts | | | | most liquid securities in the market today. These |
| of securities and bonds at a time. This has the | | | | securities are easily converted from bonds to |
| benefits ofeconomies of scale, since they qualify | | | | actual money without any loss of value. |