What Are Investment Funds?

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Like any purchase decision, selection of any investment decision has to be based on my expectations and investment capability to fulfill these goals but before that I need to measure up myself where I stand and where I want to go. I need to answer to myself:
1.) Why am I investing in any investment scheme?
2.) What kind of returns do I expect?
3.) What portion of net worth can I keep aside for any investment?
4.) What do I want to do with gains and how many years do I have?
Looking at myself, I am already at 55 years of age, handsomely employed and have children on the verge of completing their undergraduate studies. I have more or less 5 more years of active working life and can still stretch it to another 5 years. Children are going to complete studies in 2-3 years and will get married and settle in their lives in the next 5-6 years. Hence in such scenario, I need to save 30% minimum as security to take care of the children education and marriage plans. I must keep aside 20% of my earnings for investment purposes to build my portfolio and with expectations of good returns in the next 5-8 years so as to have good basket of funds by the time I hang my gloves.
Again I will have to look at that what is going to be my investment objectives, it can be:
- Capital appreciation
- Capital preservation
- Achieving sustainable tong term growth
- Combination of income and capital growth and finally what type of risks I am willing to take in the long run.
Investment funds are the pooling of resources or investment money from different investors, being managed by a trustee. Hence to plan on entering which type of fund to acquire an investor must be equipped on knowing the details and risks that he may encounter during the life of the fund. A...

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...n the market. Also with that of the trading leverage type of funds, because this will settle the movement on my equity this will then ensure that my investment or earnings will not go lower than profitable margins.
Overall I would like to hold above 20 ETFs for a time horizon of 5 to 10 years (by the time I reach 65 years of age) and by that time I will be in much stronger position to evaluate my portfolio and decide on to hold or decide as per the situation on that point of time.

Bibliography
Brown, J. (2013, May 21). ETFs? Here's what you should know. Retrieved April 4, 2014, from CNBC: http://www.cnbc.com/id/100754770
McWhinney, J. E. (2011, October 15). The Benefits of ETF Investing. Retrieved Aprial 4, 2014, from Investopedia: http://www.investopedia.com/articles/mutualfund/05/060605.asp

http://www.investopedia.com/ask/answers/09/etfs-vs-mutual-funds.asp

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