Are you a newbie investor?
Did you finally save up a little bit of money and you want to try to grow your wealth?
Did you think to yourself; 'If Warren buffet can do it, I can too!'?
Investing in mutual funds is a good start to begin your investment journey, as opposed to investing in specific stocks.
(NOTE: This is NOT professional financial advice. I am just speaking from personal experience.)
Years ago my late husband decided that he wanted to try his hand at investing. He was inspired by Buffet and Bloomberg. Mainly he wanted to buy stocks. He used to watch the business channels like CNBC and Bloomberg, religiously; and also check out books from the library to educate himself. While self-educating, he came to the conclusion that it would be better to invest in mutual funds as opposed to buying stocks. His reasons were very practical.
Reason One: Mutual funds are basically a collection of stocks, bonds, etc. Investors pool their money together and manage a portfolio of investments.
Reason Two: In USA, you can start with a minimum initial investment of $500 and then build on that. At that time in our lives, which was about 30 years ago, we had managed to save $500.
Not only are there numerous money managers out there managing these portfolios; but there are also different types of mutual funds. He did research to determine what type (or category) of mutual fund and within that type, what were “the best mutual funds”.
For a person with no financial background or experience, his investing strategy proved to be profitable. My husband set the example for me. When I first heard the words “crypto” and “bitcoin”, I decided … no experience or not, I'm diving in. (I do have a degree in accounting so I know a little about the world of finance.)
As a newbie investor, I am exploring investing in cryptocurrencies, crypto stocks, and crypto mutual funds.
DID YOU KNOW?
"More than 7,000 mutual funds trade in the United States alone, which is actually greater than the number of stocks traded domestically." (Quote Source)
"Many mutual funds are index funds (which are tied to a specific industry) so if you passionately believe in a certain sector of the market, there’s probably a mutual fund that’s made for you." (Quote Source)
Can you buy mutual funds outside of the US? “Because foreign jurisdictions are unable to regulate investment funds that are not registered in their jurisdiction, most prohibit the sale of foreign [including US] mutual funds to residents living in their countries. ...” ~ More details: Financial & Investment Information | Washington, DC
Can you invest in mutual funds of other countries? “Investing in international mutual funds is the same as investing in any other equity mutual fund. The money is invested in rupees and in return units of the funds are allocated to investors. The fund manager takes the money and invests them in the stocks of companies that are listed on exchanges outside of India. ...” ~ More details: What Are International Mutual Funds, Its Types & Advantages | ET Money
“Foreign investors who want to buy mutual funds and have U.S. addresses, many fund companies will require only that the investor also supply IRS Form W-8BEN, which certifies the foreign status of the beneficial owner of the mutual fund account. ...” ~ More details: Can Foreign Investors Buy U.S. Mutual Funds? | The MotleyFool