How to invest in "Cheap" Mutual Funds ?

Investing is all about buying cheap and selling for a profit and thus we all are always on the lookout for the next big investing opportunity where we can buy cheap and sell for a premium. Is this concept possible when it comes to Mutual Funds ? Can we buy cheap mutual funds ? or better are there any cheap mutual funds?

What are CHEAP Mutual Funds : Lot of people consider mutual funds with Low NAV as being cheap mutual funds to invest , which is a completely wrong notion since NAV being high or low has no bearing on the returns given by the fund. For example , a fund with low NAV may give lower returns than fund with higher NAV is the underlying stocks of the second fund do better. Also low NAV may be indicative of poor past performance . Thus simply investing in mutual funds with LOW NAV may not be same as investing CHEAP for selling for a PREMIUM. Understand this difference.

So, what should you do if you are looking to invest CHEAP and sell for a PREMIUM? If you are from United States, I would recommend that you start investing in direct stocks which are transparent in terms of their worth since there are multiple metrics to find out their relative premium. One of the most important metrics is Price to Earnings multiple. Always invest in stocks which are trading at relatively lower PE multiple than the overall market and that company has relatively good growth prospects going ahead. This way you shall be able to buy CHEAP and with some patience will be able to SELL at premium and make nice profits. If you want to get started, this is great place to start.

OIL LP English
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