Can a mutual fund invest its fund in another mutual fund?
813759
Simply...yes.\n\nIn fact, there is a whole sector of mutual funds called "life-cycle" funds that invest your money acorss a wide range of mutual fonds and bonds and cash depending on when you want the investment to mature. \n\nAdditionally, there are mutual funds that invest in "open-ended" funds that are the precursors to ETF. Speaking of ETF, those are mutual funds that other mutual funds can, and do, invest in. \n\nOn a contrary note, there are a few restrictions on exactly what funds a mutual fund can invest in competing fund families. That is...Fidelity Contrafund is limited in what it can invest into Vangaurd or Van Campen...(only examples).\n\nHope this helps!!
929657
Yes.  But read the prospectus, since it may have a provision whereby the administrator automatically reinvests the dividends rather than paying them out.
821290
I assume you mean mutual funds.  \n\nThere are a lot of types.  They all have the same basic function--to pool individual investors' moneys and invest those moneys for the individuals hopefully with a decent return.\n\n1 index funds.  These are funds that attempt to match the returns of particular indexes. They are unmanaged and have very low expenses.  They are relatively new.  There are maybe 200 to 400 different index funds indexing everything one can imagine from the price of gold to the S&P 500. Many but not all are traded like stocks.\n\n2. managed equity funds.  These invest in stocks.  There are many different types of these.  Some invest in growth stocks, some in small cap stocks, some in value stocks, some in foreign stocks and everything else for that matter.  Many of these can be purchased directly from mutual fund companies.  They come in three different types. 1. ones with front end loads normally 7.75%. 2. ones with no front end loads. 3. closed end funds that are traded like stocks.  \n\n3.  managed bond funds.  These invest in bonds.  Some in taxable bonds and some in tax free bonds. \n\n4. Unit trusts.  These buy a pool of bonds and do not manage them.  They have very low fees.
788864
Yes both ETFs and mutual funds can pay out dividends. Of course there are some funds that might not pay out dividends because of their investment policies. For ETFs, you can check the dividend yield of the ETF to estimate how much dividends are paid out.\n\nFor mutual funds you might need to contact the fund managers directly.
682035
I do not believe that you can, but call Etrade and ask them if they have the ability. Many foreign stocks however are traded on the U S pink sheet if they are not traded on an exchange. A couple of other options open to you are to trade the foreign indexes or to trade the mutual funds that specialize in foreign markets.
523002
They were bought out or merged.  I don't remember who by.  I should, though, I own a mutual fund through them.
90297
A mutual fund is something individuals and money managers buy to invest their money.\n\nInvestment banking is class of services provided by banks and large financial institutions primarily to corporations.\n\nThese aren't the same type of thing and cannot be compared in any way.
43974
http://www.schwab.com/public/schwab/research_strategies/mutual_funds?cmsid=P-980434&lvl1=research_strategies&lvl2=mutual_funds\n\nIf this is too specific just go to http://www.schwab.com, click on Research then click on 'Mutual Funds'.
1114832
"A mutual fund is an investment company that pools the savings of many individual investors who share a common financial goal. These investors buy shares of a particular mutual fund that has a defined investment objectives and investment strategies. The price of a mutual fund share is its net asset (total assets less total liabilities) divided by the number of shares outstanding. This figure computed and published daily, is the mutual fund’s Net Asset Value Per Share (NAVPS).\n\nA fund manager invests the resulting asset base in various securities. These securities could range from shares of stocks to debentures to money market instruments, depending on the fund’s stated objectives and risk profile. The income generated from the fund’s investment activity is distributed proportionately among the shareholders, who may redeem their shares any time.\n\n \n\nThus, mutual funds are ideal for investors who do not have the opportunity to invest in highly diversified, professionally managed, baskets of securities at relatively low costs."\n\nIs my principal secure? Can I lose money?\n\nInvesting in mutual funds, like investing in the stock market, involves risk. Any investment that involves risk means that you may lose some of your original investment. However, a mutual fund does several things to control, and contain that risk. First is having the fund managed by a professional manager. A professional fund manager's primary job is to invest the assets of the fund to get the best return for the shareholders. Second, the investments of a mutual fund are diversified, that is, it is invested in many different stocks, thus insulating the fund from a downturn in any one particular stock. While there are risks in mutual fund investing, the returns can be rewarding. Stock market investing over the long term has proven to provide higher returns than traditional investment vehicles.\n________________________________________________\n\nMutual funds or UITF (Unit Investment Trust Fund if the fund manager is a bank) are I believe good investments however currently, with the increase in interest rates, depreciating peso and the losses in the stock market, the mutual fund share values are going down especially the high risk ones.\n\nMy experience: I reinvested my original mutual fund investment to a higher yielding but riskier equity fund in April 19, 2006. At that time the price per share is PhP1,182.00, since then the share prices has gone down which caused me to become a bit jittery.  As of last Friday, June 16, the share price is PhP1,127.00 which means that if I invested PhP1,000,000 I have lost about PhP50,000 as of Friday.  However prior to April 19, 2006, about a month earlier I have realized a gain of about PhP30,000 on the same amount ( and that is for just a month).\n\n I decided to weather the crises, leave my investment intact and wait for future developments.  Advisers have said these mutual funds are for long term investments. I advise you to study the resources below.
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ADVANTAGES\n\nWhat are the key advantages of mutual fund investing?\n\nDiversification\n\nUsing mutual funds can help an investor diversify their portfolio with a minimum investment.  When investing in a single fund, an investor  is actually investing in numerous securities.  Spreading your investment across a range of securities can help to reduce risk.  A stock mutual fund, for example, invests in many stocks - hundreds or even thousands.  This minimizes the risk attributed to a concentrated position.  If a few securities in the mutual fund lose value or become worthless, the loss maybe offset by other securities that appreciate in value.  Further diversification can be achieved by investing in multiple funds which invest in different sectors or categories.  This helps to reduce the risk associated with a specific industry or category.  Diversification may help to reduce risk but will never completely eliminate it.  It is possible to lose all or part of your investment.\n\n Professional Management:\n\nMutual funds are managed and supervised by investment professionals.  As per the stated objectives set forth in the prospectus, along with prevailing market conditions and other factors, the mutual fund manager will decide when to buy or sell securities.  This eliminates the investor of the difficult task of trying to time the market.  Furthermore, mutual funds can eliminate the cost an investor would incur when proper due diligence is given to researching securities.  This cost of managing numerous securities is dispersed among all the investors according to the amount of shares they own with a fraction of each dollar invested used to cover the expenses of the fund.  What does this mean?  Fund managers have more money to research more securities more in depth than the average investor.  \n\nConvenience:\n\nWith most mutual funds, buying and selling shares, changing distribution options, and obtaining information can be accomplished conveniently by telephone, by mail, or online.\n\nAlthough a fund's shareholder is relieved of the day-to-day tasks involved in researching, buying, and selling securities, an investor will still need to evaluate a mutual fund based on investment goals and risk tolerance before making a purchase decision.  Investors should always read the prospectus carefully before investing in any mutual fund.\n\nLiquidity:\n\nMutual fund shares are liquid and orders to buy or sell are placed during market hours.  However, orders are not executed until the close of business when the NAV (Net Average Value) of the fund can be determined.  Fees or commissions may or may not be applicable.  Fees and commissions are determined by the specific fund and the institution that executes the order.\n\nMinimum Initial Investment:\n\nMost funds have a minimum initial purchase of $2,500 but some are as low as $1,000.  If you purchase a mutual fund in an IRA, the minimum initial purchase requirement tends to be lower.  You can buy some funds for as little as $50 per month if you agree to dollar-cost average, or invest a certain dollar amount each month or quarter.\n\n \n\nDISADVANTAGES \n\nRisks and Costs:\n\nChanging market conditions can create fluctuations in the value of a mutual fund investment.\n\nThere are fees and expenses associated with investing in mutual funds that do not usually occur when purchasing individual securities directly.\n\nAs with any type of investment, there are drawbacks associated with mutual funds. \n\nNo Guarantees.  The value of your mutual fund investment, unlike a bank deposit, could fall and be worth less than the principle initially invested. And, while a money market fund seeks a stable share price, its yield fluctuates, unlike a certificate of deposit. In addition, mutual funds are not insured or guaranteed by an agency of the U.S. government.  Bond funds, unlike purchasing a bond directly, will not re-pay the principle at a set point in time. \n\nThe Diversification "Penalty."
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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.
134144
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. Legally known (in the US) as an "open-end company," a mutual fund is one of three basic types of investment companies available in the US.\n\nThe portfolio manager trades the fund's underlying securities, realizing a gain or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. There are more mutual funds than there are individual stocks.
1097883
Hi fren, I think it is not advisable to invest in Mutual Funds this time, provided u have some other investments which can compensate any loss u might incur. I say so because if u follow market, u can see that for few of the very strong funds the NAV has gone down.\nMutual funds, depend on share market and currently all the analysts (national and international) have advised their clients to take a vacation.\nI think for a new investor like you, u should wait for some time, let the market stabilise once then u can think of getting in.
173961
A mutual fund is a collection of some kind of investment, usually stocks. They’re extremely popular. Your parents own at least one mutual fund if they’ve ever worked at a company. Mutual funds work like this: You pick a fund you like (e.g., growth, value, technology, international…), buy shares of the fund, and let a money manager pick the stocks he thinks will yield the best return. In exchange for this diversification and his expertise, you pay an annual fee. \n\nAdvantages: Hands-off approach means an expert money manager makes investment decisions for you. Mutual fund (ostensibly) holds many varied stocks, so if one company tanks, your fund doesn’t go down with it (i.e., it’s “diversified”).\n\nDisadvantages: Annual fees can equal tens of thousands of dollars or more (!) over the lifetime of an investment. If you invest in two mutual funds, they may overlap in investments, yielding a less-diversified portfolio than you really think. In other words, if both funds hold Microsoft and Microsoft tanks, you get hit twice. Although you’re paying an expert to manage your money, they rarely beat the market—the mutual fund industry’s dirty secret!\n\nMuch more clear info in the link below :)
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A mutual fund is exactly what the name suggests.It is a fund Created mutually by a no. of investors like me and you.each investor contributes some amount towards the fund and in turn receives units of that mutual fund in proportion to his/her contribution.\n\nThe fund manager will in turn invest that money in the  market and try to generate profits by selling and buying at appropriate times.\n\nhe will then pass on the profits to mutual fund holders(like u and me) after deducting his fee/commission.\n\nmutual funds have a lot of benefits\n1)it takes out the burden of managing your own portfolio of stocks\n2) it provides investors an opportunity to invest in stocks which otherwise are very expensive for a single person to invest \n3)it provides you access to professional management of your investment.\n\nmutual funds are primarily of 3 types\n\n1)Equity oriented funds:most of the money would be invested in equity instruments(shares):high risk and high return.\n\n2)Growth oriented funds:most of the money is invested in Debt instruments e.g.Bonds,debentures etc.:low risk ,low return\n\n3)Balanced funds: half the money is invested in debt ,half in equity:moderate risk,moderate return \n\nhope this helps....cheers
766287
Mutual fund is such a financial instrument used for investing which provides you an oppertunity to invest in stock markets and gain out of it with reduced risks. ie People who have less expertise to invest in stock market and lack with the skills or time they invest in a collective investment vehicle known as Mutual fund\nLet me explain you by an example..\n\nthere are 5 friend A<B<C<D<E\n\nThey all want to invest in stock markets but they don't have that much knowlegdge and time so they collect money 10000 each and give to A as he is expert. After a year the money becomes 1 lakh so they distribute among them equally.\n\nIf such things are done at large ie National level or universal level than they do it through Mutual funds \n\nTotol money is devided into units of 10 Rs each and profit is calculated on unit basis\n\nie New MF is priced at unit of 10Rs. If you invest 10000Rs u will be alloted 1000 units. When the stocks of this MF will grow the price of each unit will increse lets say 15 Rs after 1 year. Now when you will sell your 1000 units at a price of 15each you will get 15000 ie 50% Returns. The performance is measured by NAV (NET ASSET VALUE) of the fund \n\nCalculation of Net Asset Value\n\nMutual Funds raise money by selling their shares to public and redeeming them at current net asset value. Net Asset Value is the value of assets of the each unit of the scheme. Thus is the NAV is more than the face value of Rs 10, there is an appreciation for the investment. If the NAV is less than the face value, it indicates the depreciation of the investment. NAV also includes dividends, interest accruals and reduction of liabilities and expenses apart from market value of investment. Every Mutual Fund shall compute the NAV of each scheme by dividing the net asset of the scheme by the number of units of that scheme outstanding on the date of the valuation and public the same at least in two daily newspapers at intervals not exceeding one week. However, the NAV of any scheme for special target segment or any monthly scheme which are not mandatory required to be listed in the stock exchange may publish the NAV at monthly or quarterly intervals as permitted by SEBI.\n\n\nThe formula for calculation of NAV
782690
Mutual funds are appropriate for some and the wrong investment for a growing number of people.\n\nFor me, I would NOT invest in mutual funds if it weren't for having a 401K. \n\nOverall, Mutual funds are not good (once you're educated in investing) and many people should not invest in mutual funds unless you have to (like if it were a requirement in a 401K).\n\nHere's why.\n\nFirst of all, mutual funds exist to take average person's money.\n\nSecond, mutual funds seem to be "happy" just to do better than the S&P index, since that's often the gauge. A monkey, yes monkey, can usually outpick most mutual funds. Over 60% of the mutual funds out there can't even outperform the market (CNBC just reported the current # was 72%). That's VERY SAD!\n\nThird, mutual funds have embedded management fees in their costs. Most of these mgmt fees are 0.5% to 2% annually.\n\nFourth, most mutual funds exist not to earn you a lot of money, but are more interested in NOT "losing" you lots of money. That way you stay with them and they continue to collect their fees.\n\nFifth, mutual funds are not as liquid as one might think. If you're in mutual funds and a Bush talks in the morning and you call your broker to sell because the market is now tanking, the broker will gladly take your order, but the order will not be executed until the day is over and the negative impact is already priced into the fund.\n\nSixth, many mutual funds charge extra "fees" if you buy/sell their fund within a certain amount of time, meaning you must keep your money in the fund 90 days to 2 yrs before you're free from the fees (read the fine print on trying to get a withdrawal). These fees can be up to 3% or so of your money as well.\n\nSeventh, mutual funds have to be in the market. So if the market is crashing or going down like it has between May and now, then the funds still have to be in the market and taking those losses too. With some practice, you can time your monies to avoid some of those losses (it'll take practice).\n\nConvinced yet? Need more? \n\nEighth, mutual funds have to be pretty diversified and so if there are hot and cold sectors, they are probably in both the hot sectors and cold sectors. However, as an investor, you can buy into just the sectors you want, like metals, or housing, or energy, etc. or right now, Brokers/Dealers, Retail, and insurance!\n\nNinth, mutual funds are so big, they can only invest in certain companies. A small mutual fund with $10 billion in assets. 1% of that money is $100 million. How many companies are this big where $100 million investment isn't the whole company? Do you want to limit yourself to just those larger companies like Times Warner, Microsoft, home depot, cisco, ebay which have been sideways for years? I think not.\n\nA better way would be to buy ETFs (exchange traded funds) or holders. These trade like stocks, so are very liquid, and do not have the high fees like the mutual funds. Further, you can buy/sell them as you wish. They represent sectors or indexes, so buying them gives you the same diversification as the sector/industry/index, but with much less overhead!\n\nSee Amex.com (american stock exchange) or ishares.com, holders.com for more info. \n\n\nYou need to invest for yourself. If you can't, then sure, use mutual funds. But be aware of the shortcomings (and as you can see, there are many). \n\nLet me know if you have further questions. \n\nBest of luck!