| Stock market investing is the best way to gain big | | | | stocks. This helps as the fund manager is backed a |
| money but it requires a lot of effort and a very | | | | very knowledgeable team of analysts who will be |
| active involvement in the stock market. That said | | | | doing research as to which are the best stocks to |
| there are other ways to save you the hassle of | | | | buy and which are the stocks to sell. |
| investing directly yet stay invested in the stock | | | | The fund companies make money as they charge |
| market. That method is the mutual fund route. | | | | the management fees and these fees are then are |
| In mutual funds generally there is an asset | | | | charged as the entry and the exit loads when you |
| management company which will float a fund for a | | | | invest in the mutual funds. Each mutual find company |
| specific purpose say for investing in only alternative | | | | publishes the NAV of the fund and that is usually the |
| energy stocks. Now think of it as you investing the | | | | price of the unit at which you can either sell or buy |
| alternative energy stocks. A large number of people | | | | the units of the fund. |
| will get units similar to stocks for the money they | | | | The best thing is that you are relieved of the |
| put in the fund. There will be a fund manager who will | | | | responsibility of actively managing the stock portfolio |
| be actively managing the money and picking the | | | | and also then you can invest in sector specific funds. |