|Picture shows a person attempting to trade in mutual funds|
Is it a good option to invest in mutual funds for short periods, like share market trading?
I will answer your question in two parts:
- Trading in mutual funds (units of mutual funds)
- Trading in general
Part1: Trading in Mutual Fund Units:
Mutual funds units are issued by specific funds. They can be purchased only from the fund and can be sol back only to the same fund. I cannot buy units either from any other person or entity.
Mutual funds are not listed on stock exchanges.
In order to bridge this serious gap, mutual funds have brought out special products called ‘Exchange Traded Funds (ETFs)’. ETF are listed on stock exchanges and can be traded just like shares.
Part2: Trading in general:
Trading in general is not investing but a dangerous speculative activity. Trading / Margin Trading has ruined many lives.
I strongly encourage you to become a value-investor, which is safe and sure path to investing success and and enduring riches over a long period of time.
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With Best Regards