This article concentrates on effect of mutual fund news on buying decisions of mutual fund investors.
Entry of a new mutual fund company
If a new mutual fund company comes up nobody would bother to take out his/her funds to make investment in mutual funds of new company. However, if there is news that this company has a good reputation and has a lot of potential to grow the money of its clients, it can lead to a strong movement in mutual fund’s market. This is the power of news and advertisement. A single piece of news can change the decision of many investors.
News about changes in regulations or tax provisions
News about changes in government regulations or tax provisions can also affect the mutual fund market. For instance, if you hear any news about softening of registration charges in the real estate market, it will be very profitable to buy mutual funds of a company that invests your money in real estate. Lowering of registration charges would bring about an upsurge in the real estate market. This will further increase the share prices of real estate companies. In a nutshell, it is advisable to invest your money in mutual funds who invest in profitable industries.
Change in fund manager
The reputation of a fund manager also plays a great role in getting investors for the respective mutual funds. So, if you get to hear any mutual fund news such as an experienced and expert fund manager taking over a particular fund; it might be very profitable to invest in that fund. The success of a particular fund depends a great deal on the expertise of the mutual fund manager taking care of it. So, if the fund manager is good, there are strong chances that investment in that particular fund will help you reap huge profits.
