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It's actually "investment grade" funds versus "Class D" funds. But anyway... Both are kinda like mutual funds--a lot of securities grouped together and sold in shares. Unlike mutual funds, which are comprised of stocks, bond funds are comprised of bonds. The difference is the quality of the bonds in the fund. Investment-grade funds hold nice, safe, well-regarded, boring securities that just sit there, pay interest and don't worry the fund manager too much. Class D fund deal in Class D debentures--D stands for Default. These things are super speculative, super risky and pay large returns if they succeed. You can play in these and make a lot of money quick; you can also play in these and lose your shirt quick. If you're going to invest in Class D funds, you need another shirt--some stable mutual funds, Treasuries, investment-grade bond funds, SOMETHING that you won't lose everything you have in. Also be ready to get out of the Class D fund at a moment's notice.
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Mutual vs. Hedge Funds Mutual funds and hedge funds both pools investor's money into one larger, centrally-managed set of assets. The main difference is in legal s…tructure and regulation. In the US, mutual funds are heavily regulated by the Securities and Exchange Commission (SEC). Because they are unregulated, hedge funds are not open to the general public. The US government only allows high net worth individuals and institutional investors to invest in them. Before 2005, the SEC did not regulate hedge funds at all. Their freedom is now being curtailed. The SEC is now asserting some regulatory power. In the UK, the Financial Services Authority already exercises much more oversight. This is driving hedge funds overseas. Some more details: In the US, Mutual funds are investment companies that must register with the U.S. Securities and Exchange Commission and are subject to strict regulation under four federal laws: the Securities Act of 1933, the Securities Exchange Act of 1934, the Investment Company Act of 1940 and the Investment Advisers Act. Hedge Funds are not considered to be investment companies, and are thus excluded under the federal securities laws. This may be because of the private nature of their offerings or the financial means and sophistication of their investors (e.g., investment funds with no more than 100 investors and private investment funds whose investors each have a substantial amount of investment assets - $5 million minimum for some funds under Investment Company Act of 1940). Thus, unlike Mutual Funds Hedge Funds do not have to face: * periodic reports under the Securities Exchange Act of 1934; * regulations on the structure and operation of funds; * NASD rules limiting sales charges and other distribution fees that need to be presented in comparable and standard form (e.g., expense ratios); * restrictions on ability to leverage or borrow against the value of securities in its portfolio, which practically eliminate the ability to buy on margin and sell short; * requirements to value portfolios and price their securities daily based on market quotations; * requirements by law to allow shareholders to redeem their shares at any time; * requirements regarding a fund's portfolio diversification and its distribution of earnings; * NASD oversight of fund advertisements and other sales materials; * the need for majority of independent directors who are responsible for extensive oversight of the fund's policies and procedures.
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A mutual fund is an investment, something you buy in expectation of it going up in value. An IRA , individual retirement account, is an account which can hold different …types of investments (like mutual funds). It is not any particular investment. Think of it this way: an IRA is a bucket and a mutual fund is what you choose to put into the bucket. This issue can be confused because of the way banks market IRAs. They often marry the account with a particular investment, the CD. So, banks will advertise an IRA "paying 5% for 5 years" What they have done is taken away all choice as to what you can put into the IRA and have told you they will sell you an IRA with a 5 year, 5% CD inside of it.
Index funds are a type of mutual fund that invests in the stocks of a specific market index, attempting to maintain a value per unit that tracks that index.
Trust Funds are set up as legal entities for the benefit of a particular group or named beneficiary. Trust relationships are generally established through formal trust agreeme…nts. Governments have more of a degree of involvement in decision-making for trust agreements. Agency Funds are used to account for funds held by a government temporally for individuals, private organizations, and/or other governmental units. The fund assets are offset by liabilities equal in amount; no fund equity exists. It has an indefinite term which means that while assets continue to be collected or held for others. Both funds are often identifies in governmental financial reports for fiduciary funds
Hedging is a general concept also which is made popular by the term "Hedging your bets". This is often done by betting on 2 opposing situations thereby turning a profit …regardless of the outcome. In finance a "hedge" is often accomplished by both shorting a stock and buying options to hedge yourself in the chance that the stock goes up. A hedge fund is an unregulated investment fund that are popular amongst high-net worth and institutional investors. Hedge funds are different from mutual funds because they are not regulated, the hedge fund manager has the ability to buy and sell all types of assets, betting on rise and falls of securities.
A revolving fund is continuously replenished as funds are withdrawn. A refund is a complete repayment, or payback, of a certain amount of money.
Mutual funds and ulips are almost similar in one aspect - They invest in the stock market and the investors own units of the fund that have a face and market value. The diff…erence lies in the fact that, ulips provide life insurance coverage to its investors by charging a certain fee on the investment whereas mutual funds do not provide insurance coverage. In simple terms, ULIP stands for UNIT LINKED INSURANCE PLAN. They are a combination of Insurance and Investment plan. You could start with a small investment. ULIPs give you the benefit of investment and an insurance policy together. They are good avenues to invest in. ULIPs are Unit Linked Insurance Plans which are meant to give you safe and high returns. I personally am a ULIP holder from Bajaj Allianz and have been very satisfied with their returns. I invest in an online ULIP called iGain which allows you flexibility of payment and involves no middlemen/paperwork. So its nice and easy to invest in.
Federal funding is typically funding using our tax dollars. Private funding is exactly what it says "private funding" or funding through a hedge fund or investor.
Mutual funds are usually used to save for retirement, so you're increasing your assets. Debt is used to fund liabilities, actually the exact opposite of investing. … Mutual funds add to wealth, debt takes it away.
The difference between owner's funds and borrowed funds is just that. One is owned, and the other must be paid back.
fund based facilities includes cash credites, bill discounting, overdraft and term loan
In Income Taxes
the company invests money collected from employers
A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund p…er say refers to equity mutual funds in most cases which invest in the stock market. Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond funds Answer: Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.
Equity is the owners fund and mutual fund is pool money from the investor and invest in securities market. mutual fund has low risk an depends upon market condition.
Investing takes many forms, from simple to complex, safe to risky. If you have money you want to put to work, you should first prepare by researching the many different strate…gies available. For investors with a large amount of capital, hedge funds and venture capital are two popular options. Hedge FundA hedge fund is a pool of investment capital that a manager invests on shareholders' behalf. In this basic operation, a hedge fund is similar to a mutual fund, but with a crucial difference: the complete discretion it gives the fund manager to invest where and how he chooses. This means hedge funds can hold any and all investment types, from the safest U.S. Treasury bond to the riskiest junk bonds, stock options and futures contracts. Entrance FeeHedge funds have much higher minimum investments than ordinary mutual funds and place greater restrictions on withdrawals. Some hedge funds require you to stay invested a minimum of a year or more to avoid a run on the fund that could force it to liquidate its investments. Hedge funds tend to be riskier than mutual funds, and it can be difficult to ascertain how much their holdings are worth. Because hedge funds are not regulated by the SEC, potential investors must thoroughly research the performance and management before entrusting their money to a hedge-fund manager. Venture CapitalA venture fund takes a more active role in its investments. It allows investors -- individuals as well as institutions -- to invest money in new companies and enterprises. The fund pools money from its partners and buys a share in companies that do not yet have the finances or history to successfully offer shares on the public stock exchanges. In exchange, the venture fund earns a share of the company's future earnings, if any, and its partners divide the proceeds according to their participation in the fund. Venture Fund Risk and ReturnVenture funds represent a high-risk, high-return investment for their partners. Many companies in which a venture fund invests do not yet have sales or profits, and some stand for only a concept or invention that has not yet been brought to market. Members of a venture fund may take an active role in the operation of the new company, taking seats on its board of directors or providing active advice and guidance. Once the company makes an initial public offering, the venture fund sells its stake and divides the proceeds to its own partners.
A growth fund focuses on stocks that do not pay dividends, the company's are instead focused on re-investing any profits into the growth of their business. Debt funds are focu…sed on bonds. They typically pay interest and are much more stable than growth equities. Growth is usually higher risk, bonds or debt funds are lower risk.