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How to Invest Above 1 Million Naira in Nigeria

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How to Invest Above 1 Million Naira in Nigeria

Many Nigerians would like to start a business that will make them successful, and provide for their generations yet unborn. Because of this, some people may venture into businesses; some successful, others not so lucrative. It is for this reason that we have listed some lucrative businesses you can start with ₦1,000,000 and above.

Returns on investments are determined by factors such as your ideas, vision, plan, and how your business meets the needs of people and not necessarily by how much is invested.

Some businesses can start without any capital, and still grow to become successful. The idea is to give value and people will be willing to exchange their hard-earned cash for it.

How to Invest Above 1 Million Naira in Nigeria

How to Invest Above 1 Million Naira in Nigeria

In this article we will outline some businesses that can easily start with that amount of money, help clear your doubts, and help you make a better decision.

Investment is a good way to plan for the future. Even if businesses face risks, it is most likely that they earn you money in the long run.

Fasten your seat belts and join me on this ride.

  1. Open A Supermarket

Mini supermarkets and provision stores sell everyday products; products that people cannot do without. With 1 million naira and above, providing such a service will help you grow, make money, and meet the needs of people around you and even passersby.

People do not bargain price tags in supermarkets and superstores, so it’s a good way to keep your money coming in without worrying about bargainers.

A good position that is easily accessible has less competition and more consumers are good for this business. You will not have to worry about others selling the same products as you within a close range, and make money.

It is good to provide prompt, quality services that are needed by the locales. That way, they can always trust your store to meet their needs.

  1. Open A Restaurant

It’s not possible to start a fancy restaurant with 1 million naira and above, but it is possible to start a small one, or start a joint venture with someone else.

Food is a basic necessity and whether people like it or not, they will always need to eat. To support this, people are now busier than ever.

For starters, you will need a good location, preferably near schools, universities, offices/workplaces. These places are a sure bet that your products will find their customers.

Make your food the best that can be found around. Good food keeps people coming back. Avoid any mistake that can tarnish the image of your restaurant. Remember, food is important, and people will find it difficult to trust your restaurant again, even if for a little mistake.

  1. Start Boutique Business

Clothing is one of the necessities of life. Fashionable, up-to-date clothing? Even more appealing! Clothes have come to be more than a survival need. They have become a need for everyone to keep up with, as they evolve. People dress for work, religious gatherings, social gatherings, functions and even home.

You should know that people are looking for clothes that make them look good without breaking their banks. Bank on this. Try selling clothes that are regular and cheaper; clothes that are affordable to the majority of people and watch your store emptied and refilled.

Make sure that your clothes satisfy the needs of your clients and you’re good to go.

  1. Go Into Bakery Business

Starting a bakery business doesn’t require you to be a baker. It’s easy these days to find competent hands to help you run your business.

Have your business plan ready and start working! A nice, marketable spot is good for sighting. Be creative and original, and make products that your customers will come to know as unique to only you and watch them come back for more.

It doesn’t hurt to start small. With time, people will come to know you and your business will grow.

  1. Produce Yoghurt, Ice Cream and Sell

Dairy products are winning these days, and because they’re easy to produce, they have become a fast-growing business idea. You can sell them at retail price to people, as well as at wholesale price to restaurants, hotels, canteens, cafeterias, or simply sell in trucks.

Power supply is essential for this business, so that you keep your products cold or frozen all the time. Also, you should at least know the market you’re selling to, and most likely have a target market for your products because they cannot be kept for long.

Ensure that you provide high quality products and/services to your customers and you will see continued patronage in your business. Defy this rule and witness the opposite.

  1. Do Poultry farming

Poultry farming is a lucrative business in Nigeria, because bird’s meat is among the most consumed products here. There are many restaurants and food vendors that sell chicken in part or in whole, and Nigerians patronise them. Poultry products also include eggs, a part of many recipes.

Even though poultry farming requires some effort, it is profitable in the end.

You should put the following into consideration: land acquisition, chickens, equipment to be used on the farm, timely feeding, and vaccination.

There is a waiting market for these products at harvest: hotels, roadside food vendors and eateries.

So, there you have it. The above are some ideas for starting a business with 1 million naira and above. I hope they’ve been useful to you.

Don’t forget to share and drop your comments below.

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Business

How To Invest 1 Million Naira In Nigeria – Best 3 Places to Invest

Gudtalent Chrisent

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how to invest in nigeria

While so many people are searching for the best Nigerian investment companies that pay weekly and investment with monthly returns in Nigeria, this article is a short breakdown on how you can invest 1 million Naira in Nigeria and be sure of a good return of investment in a matter of months.

So, if you still have the question of ‘Where should I invest in Nigeria come 2021?’Below are 3 solid recommended investment moves you can make without regrets;

How To Invest 1 Million Naira In Nigeria

  • Invest on SHIFDA on Sumotrust

Sumotrust is a secure savings and investment platform popularly known with a good reputation for helping customers save and invest money. Investing with Sumotrust is already recommended and one of the best investment options in Nigeria. They offer a secure hedge fund program called SHIFDA for high net worth investors with a 24% return on investment per annum.

The minimum investment is 500,000 Naira and you can invest as much as 100 Million Naira.

SHIFDA means Sumotrust high interest fixed deposit account which works like a fixed deposit with a minimum of 6 months maturity and can last as much as 10 years.

To get started with SHIFDA by Sumotrust; 

  • Kindly visit www.sumotrust.com and create a free savings and investment account.
  • Login to your account and navigate to the ‘SHIFDA Wallet’ tab from the menu section.
  • Read through the details and follow the instructions given to invest.
  • Once your Investment request has been approved, go ahead and create a ‘Fixed Savings’ in your account, you will see a notification about your account qualifying for SHIFDA. Kindly fill-up the form and complete the process.
  • On the maturity date, your capital and interest will be automatically released into your Kick wallet where you can withdraw instantly to your Bank.

There are lots of invest-earn-daily on Nigeria platforms, but for the purpose of security; I can’t recommend any of them. However, If you’re looking for where to invest money in Nigeria; Sumotrust should be your best choice because it is trusted and has maintained a good reputation over the years as one of the reputable investment companies in Nigeria.

Related: How to Invest 5 Million Naira in Nigeria.

  • Invest in Cryptocurrency

Cryptocurrency investment is known to be the best investment of the last decade as seen on CNN. However, investing into cryptocurrency can be tricky and will cause you to lose money if you don’t know the right portfolios to hold.

If you’re just getting started, definitely, Bitcoin is one if not the only cryptocurrency to hold onto until you gain deeper knowledge and understanding of investing into cryptocurrency.

With platforms like Truzact, investing in cryptocurrency in Nigeria will never be a problem for you; as you can easily make Naira deposits using your Naira debit card or the virtual account number is given to you and instantly convert it to Bitcoin.

The platform (Truzact) also allows you to save in cryptocurrencies and earn interest on your savings. To start investing into cryptocurrencies in Nigeria, kindly visit www.truzact.com and create an account, fund your wallet, and instantly swap it to your favorite cryptocurrency.

  •  Invest in Foreign Stocks or Buy Eurobond.

The Nigerian stock market haven’t performed really well when compared to the foreign stocks for some reasons like inflation against the Naira and other factors. 

However, investors are resorting to putting their money in foreign stocks where they get to bypass the adverse sides of inflation on the Naira. You can download the InvestBamboo app from Google Playstore or Apple store, fund your account with Naira and buy US stocks directly from the App. 

Understand that the performance of your foreign stock investment is also determined by fundamental and technical analysis just like investing into bitcoin in Nigeria, so you will also need to do your due diligence before making your decision.

Looking at the 3 investment options in Nigeria listed here on how to invest 1 million Naira, Only investing with SHIFDA on Sumotrust promises secure investment and less risk management.

Still have the question of ‘where to invest my money in Nigeria’? Kindly check out the list of top investment opportunities in Nigeria.

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How To Invest 5 Million Naira In Nigeria 2021 – Top 5 Recommendations

Gudtalent Chrisent

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how to invest money in Nigeria

How To Invest 5 Million Naira Or More In Nigeria 

Indeed, 2020 was really a very dramatic year that affected lots of decisions both personal and business. While many markets have been swinging recklessly, it is very easy to get confused when deciding what investment to make that would maximize profits for you. Here at Entrepreneur Platform, we have put some list having looked at the new trends that are working for investors for your own insight on how to invest 5 Million Naira in Nigeria. 

If you wondering where you can invest 5 Million Naira or what sector to explore, below are our recommendations based on the industries capping:

How To Invest 5 Million And Above in Nigeria

  • Capital market
  • Cryptocurrency Investment
  • Forex Or Stocks Trading
  • Commercial agriculture
  • Venture funding via Angel investment

Discussing the best kind of investment with 5 million Naira can be a tricky one but our carefully selected recommendations are sure to help you know your risk appetite.

We have already made 3 recommendations in our previous article on how to invest 1 million Naira where we mentioned 1 of the best investment companies to invest 500k and above if your money is not up to 5million Naira for investment in Nigeria.

How To Invest 5 Million Naira In Nigeria

  • 1. Capital Market: (Invest with SHIFDA on Sumotrust)

According to Wikipedia, “capital market is a financial market in which long-term debt or equity-backed securities are bought and sold. Capital markets channel the wealth of savers to those who can put it to long-term productive use, such as companies or governments making long-term investments”.

One of the best capital market investments in Nigeria to make right now if you have 5 Million Naira and above to invest is by investing into SHIFDA, a fixed hedge fund investment offered by Sumotrust. It is secure and has 0 risks on the investor.

Sumotrust Investment has an ROI of 24% per annum with a minimum investment of 500,000 Naira and a maximum of 100 million Naira per individual.

Minimum maturity is 6 months to as much as 10 years.

With 5 Million Naira into Sumotrust SHIFDA, you will be getting 1.2 Million Naira returns per annum. The most interesting part if it is that its a secured investment.

To get started with SHIFDA by Sumotrust; 

  • Kindly visit www.sumotrust.com and create a free savings and investment account.
  • Login to your account and navigate to the ‘SHIFDA Wallet’ tab from the menu section.
  • Read through the details and follow the instructions given to invest.
  • Once your Investment request has been approved, go ahead and create a ‘Fixed Savings’ in your account, you will see a notification about your account qualifying for SHIFDA. Kindly fill-up the form and complete the process.
  • On the maturity date, your capital and interest will be automatically released into your Kick wallet where you can withdraw instantly to your Bank.
  • 2. Invest in Cryptocurrency:

Cryptocurrency investment is known to be the best investment of the last decade as seen on CNN

In 2020 alone, we save Bitcoin tell to as low as $3700 and in 9 months, went up to as high as over $18400, which is over X4 in ROI. 

Investing in cryptocurrency can be tricky and will cause you to lose money if you don’t know the right portfolios to hold.

If you’re just getting started, definitely, Bitcoin is one if not the only cryptocurrency to hold onto until you gain deeper knowledge and understanding of investing in cryptocurrency.

With platforms like Truzact, investing in cryptocurrency in Nigeria will never be a problem for you; as you can easily make Naira deposits using your Naira debit card or the virtual account number given to you and instantly convert it to Bitcoin.

The platform (Truzact) also allows you to save in cryptocurrencies and earn interest on your savings.To start investing into cryptocurrencies in Nigeria, kindly visit www.truzact.com and create an account, fund your wallet and instantly swap it to your favorite cryptocurrency.

  • 3. Invest in Foreign Stocks or Buy Eurobond.

The Nigerian stock market hasn’t performed really well when compared to the foreign stocks for some reasons like inflation against the Naira and other factors. 

However, investors are resorting to putting their money in foreign stocks where they get to bypass the adverse sides of inflation. You can download the InvestBamboo app from Google Playstore or Apple store, fund your account with Naira and buy US stocks directly from the App. 

Understand that the performance of your foreign stock investment is also determined by fundamental and technical analysis just like investing into bitcoin in Nigeria, so you will also need to do your due diligence before making your decision.

Looking at the 5 investment options in Nigeria listed here on how to invest 5 million Naira, Only investing with SHIFDA on Sumotrust promises secure investment and less risk management.

  • 4. Commercial agriculture

The agricultural investment will remain evergreen because people must eat to survive on daily basis. Anything Agriculture that is well-practiced on the commercial scale is sure to give you high ROI. You can go into non-perishable food production like Rice, beans, maize, melon, etc.

With commercial Agricultural investment, you should be on a 40-100% return on investment if properly done.

  • 5. Venture funding Or Angel investment

Venture funding is one business model that a lot of Nigerians aren’t doing for some reasons but I can tell you it’s a very profitable one. 

Venture Funding or Angel Investing is a type of business investment where one gets to invest a certain amount of money into a Business or startup in exchange for equity in the business. Both profit and losses are shared in Angel investment, meaning that you lose money when the business goes bad and you also make money based on the percentage of the business that belongs to you if the business goes well. 

The difference between Venture funding and Angel investing is that Venture funding lets companies invest in a startup for equity ownership while Angel investing lets you invest in a startup or business as a person. Venture funding is on a company level while Angel Investing is on a personal level. 

You can learn more about Venture capitalism here and Angel Investing here on Investopedia.

So now you have 5 Million Naira to invest in Nigeria but don’t want a secure investment of 24% via SHIFDA on Sumotrust and want something more flexible that lets you enjoy even better return, you can easily bet on a promising startup you trust based on stats and other judging metrics. 

There are lots of amazing startups in Nigeria with good prospects seeking funding to scale up, you can bet on one of them with your money and expect huge returns.

Check out our list of top 10 startups to look out for in 2021.

Still have the question of ‘where to invest my money in Nigeria’? Kindly check out the list of top investment opportunities in Nigeria.

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Best Mutual Funds in Nigeria That Will Make You Good Money

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There are many mutual funds and mutual fund companies in Nigeria which could Earn You Decent Money here in Nigeria if you know about them and how to invest in them. A great earning method for passive investors, Mutual Funds in Nigeria are investments schemes that are under the control of an AMC, an Asset Management Company. They provide regular investors with the opportunity to earn from investing in securities, stocks, and bonds.

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best mutual funds in Nigeria

For a detailed information on how mutual funds works and how mutual funds works in Nigeria, please check this guide. 

Nigeria owns a total of 107 Mutual funds, as seen from the Security and Exchange Commission’s data. Below is the analysis of the various available Fund types, as compiled by the Security and Exchange Commission (SEC).

  1. BOND FUNDS (9)
  2. EQUITY BASED FUNDS (13)
  3. ETHICAL FUNDS     (6)
  4. EXCHANGE TRADED FUNDS (10)
  5. FIXED INCOME FUNDS (21)
  6. INFRASTRUCTURE FUND (1)
  7. MIXED FUNDS (21)
  8. MONEY MARKET FUNDS (23)
  9. REAL ESTATE FUNDS (3)

TOTAL =  107

We located the Funds with the best performance by comparing the Fund prices of the last business day in December 2019, to that of July 2020. And with that we were able to bring out the top 5. We also visited the websites of the Funds to extract their profiles to add to our analysis.

9 Best Mutual Funds in Nigeria That Will Make You Good Money

The list below comprises some of the various available Fund types listed on the Security and Exchange Commission (SEC):

(1) New Gold ETF

The New Gold ETF, or New Gold Exchange Traded Fund is an Exchange Traded Fund that is owned by Vetiva. In December 2011, the New Gold ETF was listed on the Nigerian Stock Exchange (NSE). This business works by tracking the rise and fall of the price at which gold is being sold, and thus, creates an opportunity for retail, and institutional investors to invest in a debenture that has the support of a gold bullion. Each piece of New Gold security has an equivalence of 1/100 ounces similar to that of the gold bullion that is held in the gold bullion secure stockpile. Each gold is secured in the form of the London Gold Delivery Bars, and they are kept according to the Good Delivery Standards issued by the LBMA.

December 27th

Fund Price – N5,220

June 26th

Fund Price – N8,000

Return –  53.3%

Ranking – First

Note: The advent of the Covid-19 pandemic has led to an upsurge in the price of gold. Gold prices have been noted to rise during periods of market uncertainty, and this has led investors to be unable to take any tangible standpoints. So if you need something to invest in during periods of uncertainty, then this is your best bet.

(2) The Nigerian Smart Beta Equity Fund from the FBN

Owned by the FBN, The Nigerian Smart Beta Equity Fund invests its money in a variety of specifically chosen Nigerian Companies, selected by an evaluation system that is well-tested, rigorous, and research-based.

75% of the assets provided by the Fund is invested in a variety of specifically chosen high-brow companies on the Nigerian Stock Exchange. This in turn serves as a long-term capital preservation method. 25% of the Funds are invested on a short-term basis as deposits in both money making instruments, and financial institutions. And this is done to help manage liquidity.

December 27th

Fund Price – N129.17

June 26th

Fund Price – N197.29

Return –  52.7%

Ranking – Second

Note: The capabilities of this Fund is very impressive, when you compare it to the fact that it is mostly focused on equities. You could see this by taking a look at the All-Share Index of the NSE, and you would see that till date, it is only down by 9.8%. If you don’t have the heart for taking the risks that come with investing in stocks, and you still want to invest in mutual funds, then you can’t go any better than this.

(3) Vantage Balanced Fund

Launched in 2002 by Investment One, the Vantage Balanced Fund is a type of fund that focuses mostly on appreciation received from long-term capital investments. Long-term capital investments achieve their appreciation by maintaining a fixed income, a variety of money market, equities, and a variety of real estate investments. The NSE quotes the assets as high-quality equity instruments, while the bond issuers receive their investment-grade rating from any of the credit rating agencies that have been registered by the SEC.

December 27th

Fund Price – N2.21

June 26th

Fund Price – N2.87

Return –  29.9%

Ranking – Third

Note: This Fund is a kind of mixed fund, since its investments are seen in a variety of assets. Though managers of this type of mixed fund may have their own Dollar Fund, Equity-Based Fund, or their own Fixed Income Fund; the capability of the Balanced Fund trumps all of them. So if you need a form of investment that has a hand in everything then this is it, your best bet as far as the analysis of June 2020 is concerned.

(4) The Legacy USD Bond Fund

Launched in 2018, the Legacy USD Bond Fund is owned by the Asset Management of the FCMB. Registered with SEC, this is a Collective Investment Scheme that uses the US Dollar as its denomination. With an aim to generate long-term stable income, the Legacy USD Bond Fund makes its investments in fixed income securities that have been credit rated, and uses the US Dollar as their denomination. These fixed income securities are provided by Corporate entities, Supranational bodies, and the Nigerian Government.

December 27th

Fund Price – N306.5

June 26th

Fund Price – N360.5

Return –  24.4%

Ranking – Fourth

Note: If you are in the market for a fixed-income debt security similar to the Eurobonds, then you can consider the Legacy Bond Fund, it’s the best possible alternative. Though they stand at 24.4%, their bonds are remarkable with good market values, and good yields. The Legacy Bond Fund’s managers manage the Bond Fund, as well as a Money Market Fund, an Equity Fund, and a Fixed Income Fund. So, if you believe you can invest in Eurobonds, then this mutual fund is the best in its class.

(5) Vantage Dollar Fund

Launched in 2018 and owned by Investment One, the Vantage Dollar Fund is registered with the SEC, and functions in Nigeria as an open-ended unit Trust Scheme. They invest mostly in Sovereign Eurobonds, and Corporate Eurobonds. The Vantage Dollar Fund is the best option for investors that won’t be ordinarily able to access securities that are Dollar-denominated, due to the fact that they do not meet the minimum amounts needed to engage in those investments.

December 27th

Fund Price – N401.02

June 26th

Fund Price – N469.2

Return –  17.0%

Ranking – Fifth

Note: With Investment One being the first, this dollar mutual fund is the second on the list, and the second to also make it into the best 5 list. With a knack for fund management, these Dollar Mutual Funds can serve as a good investment source. This is another option from the top 5, a great one to consider as well.

Bubbling Under: Outlined in descending order, these funds are the other top 5 on the list.

  1. AIICO Balanced Fund
  2. VI ETF
  3. Coronation Fixed Income Fund
  4. CEAT Fixed Income Fund
  5. United Capital Euro Bond Fund

(6) Valualliance Value Fund

Regulated and Registered with the SEC, the Valualliance Value Fund, or Value Fund functions as a closed-end collective investment scheme. The units of the Value Fund are also listed on the NSE’s main board. Using the 3.2 billion Naira raised on the 30th of June 2011, as their initial public offer, the Value Fund began its operations. The Value Fund was initially known as the “SIM Capital Alliance Value Fund”, before they adopted their current name.

July 29th

Fund Price – N103.2

August 28th 

Fund Price – N115.05

Return – 11.48%

Ranking – First

Note: Initiated by the ValuAlliance Asset Managers, the Valualliance Value Fund was seen as the fund with the best performance in August 2020. Though their net value remained at 4.73 billion Naira, this mixed fund progressed by 11.48% at the end of August from 103.2 Naira to 115.1 Naira.

(7) Cordros Milestone Fund 2028 & 2023

Known as target-date mutual funds, the Cordos Milestone Fund 2028 and 2023 works by first having an asset allocation start out investment, or a start out investment that is a mix of securities. These are investments that initially seek the growth of their capital, (which can be in the form of stocks), as they gradually become investments that want the preservation of this capital, (which can be the money market), all before the expected dates of 2028, and 2023.

Also known as lifecycle funds, these target date funds are meant to offer an easy way for investment to be done through a variety of assets. These are open-ended funds that allow their units to be offered continuously when they are established under a Trust Deed. The Cordos Milestone Fund 2023 progressed by 7.27%, while the Cordos Milestone Fund of 2028 progressed by 9.28%.

July 29th (Cordros Milestone Fund 2028) 

Fund Price – N100.21

August 28th 

Fund Price – N109.51

Return – 9.28%

Ranking – Second

July 29th (Cordros Milestone Fund 2023) 

Fund Price – N98.35

August 28th 

Fund Price – N105.50

Return – 7.27%

Ranking – Third

Note: Owned by Cordos Asset Management, this mixed fund utilizes an initial investment of 35 units, with subsequent additions being 10 units each. Four Funds are operated by the managers, with a dollar fund, and a money market fund as well.

(8) Cordros Dollar Fund

The Cordos Dollar Fund is designed to allow for convenient investments, and easy US Dollar returns. This mutual fund invests mostly in quoted Corporate Eurobonds with US Dollar-denominated securities like the Money Market Instruments, the Corporate Eurobonds, and the Sovereign Eurobonds. Their aim is to provide more returns than an ordinary domiciliary bank account.

July 29th 

Fund Price – N36,498.27

August 28th 

Fund Price – N38,986.04

Return – 6.82%

Ranking – Fourth

Note: This mutual fund is the best option among other fixed-income debt securities that are dollar-denominated. In August, this fund is the third entry in the list of best funds from the managers.

(9) VCG ETF

Launched in 2015 by Vetiva Fund Managers Limited, the Vetiva Consumer ETF, or VETGOODS ETF is an Exchange Traded Fund that is open-ended. Designed to track the companies on NSE Consumers Goods Index and their performance, the VETGOODS ETF also reproduces the yield performance and price that make up their index.

Made up of the Tobacco, and the Beverages/Food sector companies that stand at the top 15 in terms of liquidity and market capitalization, the NSE Consumer Goods Index is a price index that is subjective to the adjusted market capitalization.

July 29th 

Fund Price – N4.02

August 28th 

Fund Price – N4.27

Return – 6.22%

Ranking – Fifth

Note: One of the best products from Vetvita, this Exchange Traded Fund has seen a growth of 6.22%. Though they have a variety of ETF Funds, two of Vetvita’s funds declined, while three of their funds recorded positive growth in that same month. If you need an exchange traded fund, this is the best that the month of August has to offer.

Bubbling Under: Outlined in descending order, this is the remainder of the top 10

  1. PACAM EquityFund (5.45%)
    7. Legacy USD Bond Fund (5.27%)
    8. Vantage Equity Income Fund (5.15%)
    9. VETBANK ETF (5.02%)
    10. Legacy Equity Fund (4.5%)

Conclusion

This comprehensive list has been offered by the NSE to help you in your investment goals, savings, and other priorities.

We can term a Mutual Fund as an investment that comprises funds that have been collected from investors, all with the aim of investing in stocks, money market instruments, bonds, and other similar securities. Run by professional fund managers, Mutual Funds are invested to produce income, and capital gains for investors.

Mutual Funds hold an advantage which is beneficial to small investors—they give them the opportunity to access diversified, and professionally managed selections of bonds, equities, and other securities. Thus, each shareholder gets the chance to participate in the loss or gain of the fund.

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