Usually, every mutual fund is created to spread risk across thousands of investors to minimize it as much as possible. However, there are different risk profiles for different types of mutual funds. Some are risky and some are almost risk-free. You, as an investor, should know that the higher the risk, the higher the return.
A mutual fund pools investments from shareholders to invest in bonds, securities, short-term debt, and bank deposits. The fund manager’s job is to produce positive returns for the investors which are then distributed to each individual investor according to his or her investment.
Are you seeking a low-risk investment option with impressive returns? Look no further than Alfalah Islamic Money Market Fund (AIMMF). In June 2023, AIMMF delivered an outstanding annualized return of 19.53% on a 30-day basis, achieving its benchmark of 7.16%.
Basically, a mutual fund is an investment fund in which people pool their money to a fund manager, so he can multiply the initial investment using his extensive knowledge and industry expertise in securities, stocks, equity etc.
Inflation is your biggest financial enemy because it devalues your money as prices increase over a given time period. Every rational human being protects his possessions. Similarly, to protect your wealth in the modern age, you have no other option but fighting inflation through investing your savings.
