Why Should You Buy Mutual Funds in the UK
Why Should You Buy Mutual Funds in the UK

Many people stash their money either under the mattress or in the bank. The problem with this is that your money is practically sleeping. Even if you open a checking account, the interest rate is measly compares to what your money can earn if you invested it in a mutual fund.

The only difference is that money in the bank is something you can withdraw anytime you want, whereas your investment in a mutual fund can take several days to take out. With that being said, let us see the three best reasons why investing in UK mutual funds is a great decision for you to take.

Your Investment is Liquid

The UK economy is relatively dependent on global politics and policies. As such, you do not want to invest in assets that are difficult to liquidate. With mutual funds, you can easily exit when the economy is tanking and you find yourself strapped for cash.

A mutual fund allows you to buy anytime you want to buy, and it allows you to sell your shares anytime you want to get out, with little difference between the fees you will incur whether you exit early or late.

Your Investment is Diversified

When you buy stocks or bonds on your own, you may not have enough money to cover the minimum purchases to ensure that your portfolio is diversified. With UK mutual funds, your money is pooled with the money of other investors until it becomes substantial enough to buy a portfolio of different cash instruments.

Since not all stocks perform in the same way, you may find yourself in a tight bind if you only have two or three companies in your portfolio. If these three tanked, then you are in trouble. With a mutual fund, you can own at least 10 different companies. If the shares of one stock fails, the others may be on the rise and you are better protected than if you bought the shares on your own.

Your Investment is Managed by Professionals

Fund managers have deep and strong financial backgrounds. They know the financial markets like the back of their hands and they have a multitude of professionals working for them. In addition, they have tools and computer software programs that a normal individual like you cannot possess. They have access to programs that are specifically built for their funds.

They also possess the skills and the knowledge that only years of extensive experience can bring. If you think reading a book or two can make you a successful individual investor, think again. On top of that, they have all the time in the world dedicated to watch over the fund. They work full time to observe the upswing and downswing in the market. With this, they can make the best decisions when to buy or when to exit a stock.

Our Partners

Oxford Finance LLC
USA Finance LLC
MidCap Financial LLC 
KPMG Corporate Finance
Pelican Auto Finance LLC 
Wells Fargo Capital Finance
Film Pro Finance LLC
Abacus Finance LLC

Subscribe to our newsletter and stay up to date on the latest industry news