Mutual Funds

Hi Mathejo, if you are going for it long term, you might as well invest directly into stock market. Mutual funds have professional fees attached to it. The longer you hold, the more you have to pay in term of maintenance fee, and other costs. If you buy direct from stock market, you just have to pay the transaction for buying, and when you sell, another transaction cost for selling. There is no maintenance cost. You can get the dividend directly into your bank account too.

Any forms of investment should be in long terms rather than short term, because of the risk involved. People going for short term are usually profit minded and that's why they take risk. Mutual funds are better off in the long term as markets can more stable, easier to build up on savings. It's like a fixed deposit thing, just that u earned higher interest with a little more risk compared to sitting in banks.

In my understanding, if you want to invest and you know how to invest, you invest in stocks directly. And if you have the money but don't have much knowledge, and don't have much time to invest yourself, then you let someone invest the money on your behalf. That's when mutual funds are helpful. And in my understanding, most mutual funds (if not all) are for the long term, since your investment is being managed by someone, and not like those of stocks where you actively invests with. Am I right with this?

In investments like share market, mutual funds long term investment is preferred as it is real investment. Short term investments are not considered as investments and are rather considered as gamble as you are not interested in investment and are usually there for quick profit. Long term investment gives the company enough time to use your investment and give returns on the other hands in short term investment we are usually taking profits of market hikes and news.