Respuesta :
A mutual fund is a good idea for making investments for retirement as it preserves the income and assets of an individual. It is not good for making investments in an emergency fund or short-term savings as there is a chance of losing the money.
What is a mutual fund?
A mutual fund is a company that invests the money of various individuals in varied securities in order to get profitable returns. The person who invests in these funds is called a mutual fund investor.
When the amounts are invested in an emergency fund or short-term savings then there is a chance of losing all the investments at one time due to a fall in the value of assets over the period of time. But if the investments are made in mutual funds concerning the retirement period then the investments are conserved for future growth. There are chances of getting good returns with minimum risk on the mutual funds.
Therefore, the mutual fund investments are good for retirement in comparison to emergency funds.
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