Let us start by explaining what a mutual fund is. A mutual fund can be defined as a company, which invests in a diversified portfolio of securities. Saving & investing become simple and easier with mutual funds. The owners of a mutual fund are those people who buy the shares of a mutual fund. The investments of these people provide money for a mutual fund to purchase securities. The fund can make money from its securities through two methods. Either the dividend/interest is paid by security to the fund or the security itself rises in value. It is also possible that the fund drops in its value or loses money. According to Richard Cayne, there are many reasons why investing in mutual funds is advantageous.
Provides automatic diversification
Experienced investors value diversification because they understand very well that diversifying a portfolio reduces the risks & adverse effects of single investment, says Richard Cayne Meyer International. As mutual funds hold different types of securities, they provide automatic diversification to the investor’s portfolio. In addition, it is a beneficial point that you get a much better and wider diversification (that is rarely expected when you manage at your own) because you combine your assets with other investors of mutual funds and therefore more money to spread around.
Liquid Investments
Mutual fund shares are a form of liquid investment and therefore, can generally be sold anytime. This liquidity lets you access your money in an investment in a quick and timely manner. That said many funds have restrictions such as monthly, quarterly or yearly only liquidity points.
Availability of choice
Mutual funds provide you a wide variety to choose from various options. The availability of classes like money market funds, stocks or bonds provide different investment options to the investor. The investor can select the one which is most suitable for his requirement.
Portfolio managed by experienced professionals
As per the view of Richard Cayne in Bangkok, an experienced and insightful investor always chooses his investments only after performing due research and in depth consideration to what he/she is trying to accomplish as per his/her investment goals and objectives. Any kind of investment demands continuous observance and one would be advised to seek assistance from experienced and trustworthy professionals to help manage your portfolio. These professionals continuously monitor your investments and analyze that which investments are worth buying or selling.
Low cost involved
According to Meyer International in Thailand, since mutual funds or collective investment structures can hold various assets and managed by a team of professional fund managers who will normally charge fees for such services it is important to look to minimize these fees as much as possible as play directly impact the performance of ones portfolio. This is one reason Richard Cayne Meyer Asset Management Ltd prefers offshore registered mutual and hedge fund structures as their overall fees can be lower than their onshore counterpart funds due to lower costs of compliance and service management, not to mention they make more money as they do not have the same tax obligations. It certainly makes sense to reason that if you paid less tax you would be able to save more money and same with fund structures.
Richard Cayne has been in offshore fund consulting and having worked in Tokyo Japan Meyer Asset Management Ltd for 15 years as investment advisor to some of the most respected securities firms in Tokyo he is also well positioned to consult with high net worth individuals and security firms around the world on offshore investments and structuring. Richard Cayne now Managing Director of Meyer International Ltd the Bangkok Thailand servicing arm of Meyer Asset Management Ltd is also a Director of Asia Wealth Group Holdings Ltd which is listed on the PLUS market in London UK.
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