What is the difference in investing in share market and mutual funds ?
488412
In Share market you are directly buying shares (stocks) of a particular company and you become the stock holder.\n\nIn Mutual Funds you are giving the money to a fund company and they are investing on your behalf. In this case you are not issued any share but you are issued units which you can track through the Fund Company's NAV. Secondly mutual fund companies invest in different companies and are not just limited to one single comapny so the risk amount is quite less.
998852
They just break down the price of the stock or fund as a percentage. If you invested 25.00 and the price of the stock is 50.00 you would have you have a 50% or a half unit. This is a common practice for mutual funds and other investing vehicles. It allows you to decide how much money you want to contribute, and they can put your total allotment to work for you, instead of having to wait until you have enough money to buy a full share or unit.
909846
The main difference is that ETFs track an index, and for various reasons they trade at almost exactly their NAV (Net Asset Value, the value of the stocks held by the fund).\n\nClosed end funds are like ETFs in that their shares trade on the open market, but they don't follow an index. They are "actively managed." For various reasons, they may trade at a "premium" (the share price is higher than the NAV) or a "discount."
342742
To best grow your money you first need to establish the amount of risk your willing to take. Low risk, get into bonds or money market accounts and expect about 5-6% annually. Mutual funds will offer the full range from 5-20% on average, but the more gain means the more lost. For the most aggressive risk (and therefore gain) play in individual stocks, options or on forex (foreign exchange currency market).\n\nThe most important thing is to spread your money around, don't lump all your capital into one or two stocks, because your setting yourself up to take major losses. Educate yourself before jumping into anything. Investopedia.com is a good resource for that - just remember that they are supported by various brokers and agencies, so take recommendations lightly. They do, however, provide good solid information on the basics.
136140
mutual fund, in finance, investment company or trust that has a very fluid capital stock. It is unique in that at any time it can sell or redeem any of its outstanding shares at net asset value (i.e., the price of a share equals total assets minus liabilities divided by the total number of shares). A mutual fund, also called an open-end investment company, owns the securities of several corporations and receives dividends on the shares that it holds. A closed-end investment company differs from an open-end company in that the number of shares is limited and the price of the shares may fluctuate above and below the net asset value. The earnings of a mutual fund are distributed to the holders of its shares. It is hoped that a loss on one holding will be made up by a gain on another. The holders of mutual-fund shares thus gain the advantage of diversification, which might ordinarily be beyond their means. Common mutual funds, which often provide skilled management for security holdings, include stock, bond, balanced, index, and money-market funds. Stock funds mainly invest in common shares, and bond funds in bonds; such funds may specialize in a particular category of stocks or bonds (such as Internet stocks or municipal bonds). A balanced fund might invest in preferred stocks and bonds in addition to common stocks. Index funds invest in a portfolio that mimics a given index, such as the stocks that make up the S&P 500. The forerunner of the modern mutual fund was established in Belgium in 1822, and the use of these closed-end investment companies soon spread to Great Britain and France. They became popular in the United States in the 1920s, but from the 1930s the open-end mutual fund became more popular. Mutual funds experienced a period of tremendous growth after World War II, especially in the 1980s and 90s.
82526
2 ways to make money.  First if you buy the shares at 10 dollars and they jump in price to 13 you made 3 dollars per share. The second way is when you own shares say of GM and they decide to pay a dividend of 1 dollar per share. You would receive a dollar for every share you own. Mutuals are better in general for novice investors do to investing in many companies into one fund which makes your risk less.  Also they pool many people together to invest which makes expenses much less do to more people sharing the expense.  If you interested in funds.  Vanguard is a great way to begin.  They have some very nice funds and their expense ratios are the best around.
806395
first u have to know why the mutual funds is for --- since in shares the risk is high so they go for the mutual fund where there are number of sectors that are being part of the fund like IT,Medical etc.,  the main target audience for the mutual fund is that Middle cluase people since they love to invest but they have fear that how that perform in the market so they introduced the mutual fund........\n\nthe mutual fund is marked by the NAV (Net Asset Value)\n\nand the initial public offer is Rs 10. no matter which company belong to the fund.....\n\nand now they call it as NFO\n\n\n\ninvest  in the mutual fund and let the money will earn to you........\n\n\nremember there are many types of investment are there like SIP
98840
Cash unless you need your money for something more important.  With cash you pay the actual price with no interest.  Another question you should ask is if you think your mutual funds are going to go up in price in the soon future.
69628
Stocks represent ownership in a corporation.  When a company goes public, they sell shares to the general public thru an underwriter who sells the shares to large clients.  Once these large clients have the stocks any individual can buy or sell these stocks in the open market -- once you have access to the market.\n\nTo get access to the market you need to open up a brokerage account with an investment company.  If you have never bought or sold stocks before I highly recommend that you get your feet wet with mutual funds first -- reading the prospectuses could provide you with some information about what THEY look for when purchasing stocks and bonds.\n\nThe stock market is the bets place to have your money for the long term, but you really should leave it to the experts -- funds are a great way to diversify, particularly with limited funds.
148087
Buy and hold.  Mutual funds which buy and hold do better on average than those that buy and sell. Most active trading systems sound good, but are based on faulty theories.  When they work, they do so because of luck, not because they are inherently sound.
188749
Everyone is different and as a result, different people look at different things before they purchase a stock.\n\nI suggest you get a book or five on stock market investing and start learning as much as you can if you want to become good at it.\n\nAnd by the way, companies that cater to people who invest in the stock market by selling them up-to-date information and analysis charge hefty fees for their services, so I wouldn't plan on doing this without a nice, big nest egg to begin with and a good job to back yourself up when things go against you and you lose some money.
734077
A stock broker will charge you commission on trades, which may be several percentage points of what you invest.  The commission fees generally make this an unacceptable option when you are investing small amounts of money.  You have to remember with a stock broker that the broker doesn't make money unless he's making trades for your account (unless there is a fee arrangement of some sort).  For small amounts of money, mutual funds are probably more reasonable.  The pros of mutual funds is that they are a generally low-cost way to invest across several different companies, and there are professional investors who get paid well to make good investment decisions.  The cons to mutual funds is that they also charge high fees, generally 1-2% and often have really high turnover which can leave you with a hefty tax bill.  Further, it is proven that professional investors rarely beat the stock indices (S&P 500, Russell 2000, etc) over the long term.  My best advice for you would be to explore low cost ETF (Exchange Traded Funds) products that would give you exposure to the market.  Vanguard is well known for a very low cost fund that tracks the S&P 500, which is roughly the largest 500 stocks by market capitalizaiton.  There are also funds that track bond indices, like the Lehman Aggregate index, but assuming that you are younger, you don't really need to have much exposure to bonds right now.  If you can't invest directly with Vanguard or a similar firm that offers low-cost exposure to the market, then you could open an account with a low-fee online broker like Etrade or Ameritrade and then buy broad market ETFs that track something like the S&P 500, etc.  You would also want to consider putting about 10% of your portfolio (assuming again that you are young) in international stocks, which could also be accomplished through low-cost ETFs.  \nThis probably sounds kind of confusing, but the key point here is that stock brokers and mutual fund companies charge high fees and rarely beat the broad market indices.  If you are being charged 2%, then your fund needs to return 2% more than the market for you to come out ahead.  That's much easier said than done.
43489
They get a fee which is calculated into the expense ratio of the fund. The more people that invest in the fund, the more money goes into their pockets for managing it. \n\nThey bring experience and possible insight into managing the funds. Though I am not a super big fan of mutual funds, they can be a good investment for someone who doesn't want to watch the market daily and choose individual stocks. There's less risk in buying a fund than an individual stock.
970094
The best returns come with the higher risk.   Mutual funds are usually poorer returns than you get from picking the rights stocks because someone is taking a portion of your profits to supposedly reduce your risk.  You pay for returns in risk to your investment (for stocks etc) or in frustration cost (rentals,  owning your own store etc).  \n\nRental property is my preference,  as long as your careful and check things out well (ie actually checking for places to rent to confirm comparable rental rates etc).  Over the long term it's one of the best lower risk investments you can get, but it does take your time and effort.
960657
Just so you know, Mutual funds aren´t for everyone.  Personally, I wouldn´t invest in them unless I had to.  For more detail on that, just do a search for where I´ve addressed this question in other answers.\n\nHowever to answer your question, there are several rankings of mutual funds.  Here are some of the sources with appropriate link.\n\nLots of sources for Mutual fund reports that you´re looking for.  Here are some.\n\nMoney Magazine\nhttp://money.cnn.com/magazines/moneymag/bestfunds/indexfunds.html\n\nMorningstar\nhttp://www.morningstar.com/Cover/Funds.html?pgid=hetabfunds\n\nKiplingers\nhttp://www.kiplinger.com/personalfinance/investing/funds/?\n\nMutualFundRankings\nhttp://mutualfundrankings.org/\n\nAnd you may want to take a look at this article on mutual funds too just so you have a little more info if you´ve got tax concerns.\n\nhttp://www.stanford.edu/dept/news/pr/93/930429Arc3288.html\n\nIf you have any questions, please let me know.\n\nHope that helps!\n\n\n\nInfo on mutual funds\nhttp://beginnersinvest.about.com/cs/mutualfunds1/a/aa031501.htm\n\nInvesting for Beginners\nhttp://beginnersinvest.about.com/popular.htm
164271
There are a lot in shares and bonds. It is also depending on your purpose also (e.g. if you are an investor, speculator or just want to study shares and bonds).\n\nTo me, the following things are important and must know:\n- what is shares and the difference between shares and bonds\n- how trading works\n- the relationship between risk and returns\n- the factors affecting share price and bond price\n- how to estimate the underlying share company and the bonds
342573
These might be of help:\n\nhttp://en.wikipedia.org/wiki/Share_market\nhttp://en.wikipedia.org/wiki/Stock_exchange