Usually, the composition of equity funds is 80% shares and 20% cash. This composition can be seen in fund fact sheets or in the prospectus. The fund fact-sheet itself contains information that is needed by investors, including information on what stocks are bought by the Investment Manager. The contents of the shares may vary depending on the strategy used by the relevant Investment Manager. Apart from that, you can always go to magodomercado.com whenever you want to learn more about Como investir na bolsa, so you can know a lot of things about it before you decide to make your first investment in the stock market.
In addition, Return and risk are interrelated elements and cannot be released in equity funds. Understand, return and risk are very important to get the best mutual funds. You should not see from one side only and have to calculate carefully between the two possibilities, namely profit or loss.
The fact that cannot be avoided, stock mutual funds do offer high returns. But behind that most people forget to bring stock mutual funds are also high risk. Therefore, in a stock mutual fund, the basic principle of investment that is certain to apply is a high-risk high return. Given the fluctuations that cannot be predicted easily, the profit and loss figures can rise and fall sharply even to the highest and lowest levels.
However, that does not mean that risk is a barrier in playing in equity funds. With a good financial plan, the risk can be eliminated or even can be recovered/reversed into multiple benefits.
Share prices in several developing countries experienced a decline at the lowest level in 2008. At that time many investors were out of business because they could not control the conditions and did not have a good financial plan. But it is also not uncommon for financiers who can survive and eventually bounce back to reap profits after recovering market conditions.