Believe it or not ? This is what people think when it comes to long term investment. Base on people survey: People will think about Mutual funds as more secure than other plan. So we do some comparison between pros and cons for you to decide if this gift is really what you want .

Mutual fund

It is a professionally managed investment fund that pools money from many investors to purchase securities with minimum requirement for open account such as $2,000 or $5,000. Also, the recipient of the mutual fund gift will need to have an account with the company that the fund is offered through.

Pros of mutual funds

Mutual funds make a great gift that will be poised for long-term growth. If you are giving to young kids, then this is a great way to start an account that will grow with them.

Cons of mutual funds

Transferring a mutual fund can be a tedious process. Depending on the company you choose to work with, it may involve a lot of paperwork and many market information that you have to research before open account.

Now you know what is it, but there are many ways to secure your investment. Contact us for more information. we will be happy to talk to you.