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Roger00
Joined: Wed Aug 18, 2010 4:47 pm Posts: 15 Location: uk
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Mutual fund
Hi
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals).[1] The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. In the U.S., a fund registered with the Securities and Exchange Commission (SEC) under both SEC and Internal Revenue Service (IRS) rules must distribute nearly all of its net income and net realized gains from the sale of securities (if any) to its investors at least annually. Most funds are overseen by a board of directors or trustees (if the U.S. fund is organized as a trust as they commonly are) which is charged with ensuring the fund is managed appropriately by its investment adviser and other service organizations and vendors, all in the best interests of the fund's investors.
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Wed Aug 18, 2010 5:15 pm |
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royle
Joined: Wed Jul 28, 2010 6:25 pm Posts: 37 Location: uk
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Re: Mutual fund
Hi
A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. ...
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Wed Aug 18, 2010 10:23 pm |
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warner
Joined: Wed Aug 18, 2010 10:28 pm Posts: 5 Location: UK
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Re: Mutual fund
Hi A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.
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Wed Aug 18, 2010 10:45 pm |
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warner69
Joined: Wed Jul 28, 2010 8:01 pm Posts: 14 Location: UK
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Re: Mutual fund
Hi A mutual fund pools money together from thousands of small investors and then its manager buys stocks, bonds or other securities with it.
When you contribute money to a fund, you get a stake in all its investments.
That's a big deal: Since most funds allow you to begin investing with as little as a couple thousand dollars, you can attain a diversified portfolio for much less than you could buying individual stocks and bonds. Plus, you don't have to worry about keeping track of dozens of holdings - that's the fund manager's job.
The price for a share of a open-end fund is determined by the net asset value, or NAV, which is the total value of the securities the fund owns divided by the number of shares outstanding.
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Thu Aug 19, 2010 4:36 pm |
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elison
Joined: Thu Aug 19, 2010 10:00 pm Posts: 9 Location: UK
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Re: Mutual fund
Hi As you probably know, mutual funds have become extremely popular over the last 20 years. What was once just another obscure financial instrument is now a part of our daily lives. More than 80 million people, or one half of the households in America, invest in mutual funds. That means that, in the United States alone, trillions of dollars are invested in mutual funds
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Thu Aug 19, 2010 11:26 pm |
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jaggy
Joined: Sat Aug 21, 2010 4:01 pm Posts: 6
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Re: Mutual fund
The mutual fund will have a fund manager that trades (buys and sells) the fund's investments in accordance with the fund's investment objective. A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests typically in investment securities (stocks, bonds, short-term money market instruments, other mutual funds, other securities, and/or commodities such as precious metals).
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Sat Aug 21, 2010 4:37 pm |
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elison10
Joined: Fri Aug 27, 2010 12:31 pm Posts: 4 Location: uk
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Re: Mutual fund
Hi Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. Closed end funds have limited number of shares.
Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. Mutual funds get their earnings in two ways. First is the most organic way, which is the dividend they get on the securities they hold. Second is by the redemption of their shares by investors will be at a discount to the current NAVs (net asset values).
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Fri Aug 27, 2010 7:41 pm |
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Nopin
Joined: Sat Aug 28, 2010 7:19 am Posts: 2
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Re: Mutual fund
Hello
If there is anything that mutual fund investors have learned during the volatile past decade, it's that the past is not prologue. Between December 1999 and December 2009, U.S. stocks on the S&P 500 had an annualized total return of -0.9%. That's one of the four lowest for any decade in the past century and a far cry from the long-term average of 8.1%.A mutual fund's past returns are no guarantee of its future. Even the most sophisticated rating systems are erratic at best in forecasting a fund's performance in the years ahead. But for decades, academic experts and analysts have proven that fund costs are a powerful predictor of relative performance. Returns come and go, as it were, but costs go on forever.A recent study by the Morningstar fund evaluation service came to this very same conclusion. In an admirable report that was the opposite of self-serving, Morningstar found that using fund-expenses ratios as a factor in choosing mutual funds was even more helpful than relying on its own carefully constructed "star ratings." Specifically, focusing on funds with the lowest expense ratio was more helpful in fully 58% of the time periods studied.
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Sat Aug 28, 2010 8:04 am |
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reggy
Joined: Tue Aug 31, 2010 11:50 am Posts: 3
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Re: Mutual fund
An open-ended fund operated by an investment company which raises money from shareholders and invests in a group of assets, in accordance with a stated set of objectives. mutual funds raise money by selling shares of the fund to the public, much like any other type of company can sell stock in itself to the public.
Mutual funds then take the money they receive from the sale of their shares (along with any money made from previous investments) and use it to purchase various investment vehicles, such as stocks, bonds and money market instruments. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities. For most mutual funds, shareholders are free to sell their shares at any time, although the price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.
Benefits of mutual funds include diversification and professional money management. Mutual funds offer choice, liquidity, and convenience, but charge fees and often require a minimum investment. A closed-end fund is often incorrectly referred to as a mutual fund, but is actually an investment trust. There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.
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Tue Aug 31, 2010 1:56 pm |
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shne00
Joined: Tue Aug 31, 2010 10:06 pm Posts: 4 Location: uk
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Re: Mutual fund
Hi
A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value (NAV), is calculated daily based on the total value of the fund divided by the number of shares purchased by investors.
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Tue Aug 31, 2010 10:28 pm |
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