If you are new to investing, here i give you 10 reasons for investing in one of the most lucrative investment option i.e. Mutual funds:

• Portfolio Diversification:- Mutual funds are a convenient and affordable way of gaining access to a wide range of investments that would be very difficult and time-consuming to purchase and manage individually.
  
  
• Professional management: Mutual fund investments are managed by experienced professionals who devote themselves exclusively to tracking the markets, analyzing investments and implementing a consistent investment strategy.
  
  
• Flexibility to meet your needs and goals: A wide range of mutual funds are available to help meet the needs of every type of investor, from conservative to very aggressive & they also meet various investment goals like establishing an emergency fund to saving for a vacation, retirement or education.
  
  
• Convenient Administration: Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad deliveries, delayed payments and unnecessary follow up with brokers and companies. They save your time and make investing easy and convenient.
  
  
• Return Potential: Over a medium to longterm, Mutual Funds have the potential to provide a higher return as they invest in a diversified basket of selected securities.
  
  
• Low Costs: Mutual Funds are a relatively less expensive way to invest compared to directly investing in the capital markets because the benefits of scale in brokerage, custodial and other fees translate into lower costs for investors.
  
  
• Liquidity: In open-ended schemes, you can get your money back promptly at Asset Value (NAV) related prices from the Mutual Fund itself. With close-ended schemes, you can sell your units on a stock exchange at the prevailing market price or avail of the facility of repurchase through Mutual Funds at NAV related prices which some close-ended and interval schemes offer you periodically.
  
  
• Transparency: You get regular information on the value of your investment in addition to disclosure on the specific investments made by your scheme, the proportion invested in each class of assets and the fund manager’s investment
  strategy and outlook.
  
  
• Flexibility: Through features such as Systematic Investment Plans (SIP), Systematic Withdrawal Plans (SWP) and dividend reinvestment plans, you can systematically invest or withdraw funds according to your needs and convenience.
  
  
• Well Regulated: All Mutual Funds are registered with SEBI(Securities & Exchange board of India) and they function within the provisions of strict regulations designed to protect the interests of investors. The operations of Mutual Funds are regularly monitored by SEBI.
  

Consider the different asset class mix

(i) Real Estate Trust (REIT)
(ii) Equity Fund
(iii) Money Market Fund
(iv) Balanced Fund (50% Equity, 50% Money market).


A good mix of at least 2 of above is recommended.
As a rule let part of your funds be managed by experts as it is a leverage.

????
That is you but you are not everybody.
The topic is for everybody with different interests and investment objectives.

Still about you not about everybody.
You are talking about Kenya but I am looking at the principles and the general concept for the generality of investors for different nationalities!!!
You cannot use your Kenya experience to condemn an investment product. In addition you are not completely talking about Kenya because Dry Associate swww.dryaasociates.com has wonderful equity products offshore that is of world class standards. The oly problem is that you need a minimun of USD to invest. You invest in USD.

Once again it is not about your view or experience but that of everyone.

Thanks & Bye

It is good to have both concepts & practicals. We just can't look good on paper, we have to show these things can be done, have been done & how they can be done.

That's is it! Concept & Practise. I have learned something new from U today & ur other posts, and I am thankful. That is in order

Thanks to you Cde I admire the risk you took in ZIM and the patience paid.

I was like a crazy man when I told my friends here in Nigeria that I want to invest in Kenya.
But today my cumulative returns inK enya market is nothing to compare to Nigeria !!!

@ young - This databank group do not have an agent here in Kenya..i am interested in investing with them but i would prefer if they have someone here in Kenya also.

Hi everyone, I have been reading posts for a while, and I finally feel compelled to reply. As a current investor, I would classify mutual funds, index funds or any other funds that follow a particular index as a waste of time for a serious investor. I am talking from experience, I invested in an index fund during the 2008 stock market collapse in the US. While I made a good profit, it pales in comparison to what I would have made had I invested the Warren Buffett way. A quick exapmle is Citigroup was selling at around $10/share at the time of my investment, it is now selling at$40/share and this is within a 2 year span. There is a reason why Warren Buffett does not invest in mutual funds, he instead does selective contrarian investing, where you pick up stocks of great companies at their absolute lowest selling price. Unfortunately I can only comment on US Equities, but i'm pretty sure the same formula can work at the NSE. Just keep in mind that when you buy a mutual fund, you are giving that funds' manager complete control over your money, and most managers just mimick the index, rarely do they beat it.

Thanks Cde. Are you invested at the NSE?? I am interested in investing but do not know how to due to distance( I am currently not in a position to travel to Kenya) I dont want to rely on relatives coz they burned me during the Safcom IPO. How can I get started from a distance? I see alot of buying opportunities right now at the NSE.