wHAT IS MUTUAL FUND? HOW MANY TYPES ARE THERE?
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There are several types of Mutual Funds:\n\nSector-based: These invest only in a particular sector Eg. IT, Telecom, Petrochemical, etc\n\nIndex-based: These invest only in the Index i.e. BSE Sensex, NSE Sensex. Their valuation is based on the value of the Index and not directly on any particular share.\n\nGrowth-fund:They generally invest in equity across sectors and try to maximise their gain wherever possible.\n\nMid-cap/ Small-cap Fund: They invest only in mid-cap or small-cap companies. Though the returns can be very high, so are the risks.\n\nBalance Fund: They invest both in debt and equity so as to provide good growth through equity and safety but low returns through debt.
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mutual funds ..as the name suggests is pool of funds contributed by large no. of individuals which is invested by financial experts in different fields to give a good retuen on the investment to the contributers. A company, trust, financial instituion as the case may be in a country invites funds from individuals and hires experts to invets the same into equity, debt, commodities and even real estate to generate profitable returns on them and investors thus gain from their investment as the profits made on investments are distributed among different contibuters to the fund in the ratio of their contribution. thus mutual funds help small investors to gain advantages of diversified portfolio and gain from specialised knowledge of experts who invest the money. to know more email me at siderminator@yahoo.co.in
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Mutual fund schemes may be classified on the basis of its structure and its investment objective. \n\nBy Structure: \n\nOpen-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.\n\nClosed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.\n\nInterval Funds Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.\n\nBy Investment Objective:\n\nGrowth Funds The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.\n\nIncome Funds The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.\n\nBalanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.\n\nMoney Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.\n\nLoad Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.\n\nNo-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.\n\nOther Schemes: \n\nTax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is in
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These 2 sites are pretty good for learning. The beginner will do best investing in mutual funds.
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1) ETFs are essentially "static" as to buying and selling costs, whereas mutual funds are constantly turning over shares.\n2)  ETFs and foreign stocks:  Since ETFs are relatively static, the "set-up" commissions paid are one-shot costs
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Go to bookstore and get Mutual Funds for Dummies or Investing for Dummies.  They will have easy to understand concept and descriptions.  More information is better when it comes to investing.  Take your time.  Start saving money now and get into the habit.  Put it into a savings account now while you are learning about mutual funds.  When you feel ready, then you already have some money saved up.
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mutual funds are pools of money, invested in varying amounts by a large number of people. the money is invested according to a specific objective. a professional fund manager runs the fund and sees to it that the investments are in accordance witht he stated objective of the fund. these types of investments have enabled small investors to purchase diversified portfolios with the use of professional managers.
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hi\nI have no idea about your knowledge on mutual fund. so it is difficult to me to understand from where I start and where to end.\nSo I just describe the basic things of mutual funds. Actually mutual fund are share trading companies. \nThink you have invested in five different share of the capital of 10 lakh but you are not related to this field, then it is difficult for you to make decisions when to sell or buy share.\nIn that case the solution is mutual funds, most of mutual fund are created by big financial company or banks. you invest in mutual fund and mutual fund invest in share. so indirectly you investing in shares with the help of professional persons.So mutual fund is more secure than investing in equity share.and secondly mutual fund work under observation of Security Exchange Board of India.\n\nbut risk also exist with mutual fund too because indirectly your money is investing on market.    \n\nmutual fund can be classified such as \nEquity diversified\nhybrid equity oriented\nhybrid Debt oriented\ngilt etc. \n\nfor more details or specific details you can mail me .
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There are lots of mutual funds that will take $100 to get you started.  So a search in Yahoo Finance or MSN for funds that start with a min investment of $100.  I have been an investment advisor for over 23 years.
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There are two types of mutual funds.  Front end load mutual funds and no load mutual funds.  The load mutual funds have about a 5.75% sales charge added to the fund.  If you buy funds through a bank, chances are excellent they will suggest a load mutual fund because that generates income for them.  No load mutual funds do not contain a sales charge.  Generally they are sold directly by mutual fund companies and through many on line stock brokers.\n\nJust because a fund has a load does not necessarily mean that it is a bad investment.  Some of those funds have performed excellently and generally they have a lower expense ratios.  Enough lower that over a five year period you will make up the difference in the front end load.  \n\nThere are also closed end funds that are traded like stocks. Many Index funds fall into that category.  Most banks will be happy to sell you these funds because they receive a brokerage commission just like when they sell stocks. \n\nFund companies such as Royce,  Fidelity, Vanguard, and most others have internet sites where you can read about the funds they offer, down load the application forms and then order the funds.  You can then afterwards log onto their sites, check on how your funds are doing and even redeem your shares. \n\nYahoo finance and Forbes both offer mutual fund screening tools to help you find good funds.  Those sites however do not evaluate closed end funds.  You have to go to special internet sites to find out information about those.  Don't know why?
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In simplest terms, mutual funds are just groups of investments. They can be stocks, or bonds, or a combination of the two. They can even be investments in real estate (REITs).\n\nIn an active mutual fund, a fund manager decides what to purchase for the fund. In a stock fund, the manager picks the stocks to buy in hopes that the stocks will go up. In bond fund, he picks bonds. In some funds, the manager has the option of choosing between both stock and bonds. He may even decide buy nothing if he can't find anything worth buying, keeping cash on hand until he finds something worthwhile to buy.\n\nIn an index fund, a fund manager's main job is just to buy the stocks or bonds in an index. For example, in an S&P 500 stock fund, the manager's job is to buy all the stocks in S&P 500 and hold them.
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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.
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to learn about mutual funds and the stock market go to investopedia.com or the motelyfool.com. they will tell you everything you need to know
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Sie Können die meisten Zinsen aus CD's haben. Mutual Funds sind auch ein sicher anlegen.\n\n*DISCLAIMER*- excuse my terrible German, I study it at University, but that is not saying much.
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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.
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I like Legg Mason Partners Funds (formerly called Smith Barney). I invest in LMP Aggressive Growth, LMP Fundamental Value, and LMP Appreciation Fund. These are known as "3 Fund Approach." Why? Just like you don't want to invest all your money into one stock, you don't want to invest your money all in one mutual fund (even though it invests 25 to 300 different companies). How you want to diversify your money is up to you, but I put about 33% into all.\n\nMy dealer is PFS Investments and they don't charge any fees to use their services. You can buy or redeem your shares online. You can check the value of your portfolio anytime online too. Oh yeah, make sure the agent is properly licensed and ask about the complimentary financial need analysis (a very useful financial tool).\n\nAnyway, no matter how you invest, don't pull out if the stock market crashes because you know stock market will always rebound (base on past performance).
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Enjoy the reading.\n\nThey operate through private placements and restrict share ownership to rich individuals and institutions frees them from most disclosure and regulation requirements that apply to mutual funds and banks.\n\nFor present purposes, three main classes of hedge funds can be identified: \n\nmacro funds, which take large directional (unhedged) positions in national markets based on top-down analysis of macroeconomic and financial conditions, including the current account, the inflation rate, and the real exchange rate; \n\nglobal funds, which also take positions worldwide, but employ bottom-up analysis, picking stocks on the basis of individual companies' prospects; and \n\nrelative value funds, which take bets on the relative prices of closely related securities (treasury bills and bonds, for example).