“I read in the financial papers that mutual funds are a good option for people who are looking for higher returns than available on regular savings account. What exactly are mutual funds and how do they work?”

The investment landscape in Jamaica is certainly undergoing some interesting changes. Gone are the days when people only saved in bank accounts- now they’re searching for more options that can give better returns on their investments.

What is a Mutual Fund?

A mutual fund is one of the investment choices that can offer an investor the opportunity to make more money. A mutual fund is simply a collection of assets such as stocks, money market instruments or bonds that are purchased by a pool of investors and managed by a professional company.

The mutual fund company has specific objectives as to how they can invest the money they have collected from investors. These details would be found in the prospectus of the mutual fund. Continue reading Pooling Your Money for Higher Returns →