 |
| Picture shows a person attempting to trade in mutual funds |
Actual Question:
Is it a good option to invest in
mutual funds for short periods, like share market trading?
Answer:
Dear Friend!
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.
Related Articles:
- Is There A Mathematical Formula for Option Trading?
- Is it a Good Idea to Learn Intraday Trading or Margin Trading?
- What Are Investments Actually?
- What is Short Selling?
Thank you,
With Best Regards
Anand
No comments:
Post a Comment