When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?
Can mutual funds and investments as such be seized by creditors?
Answer .
\nPossibly. This is an issue where the consumer's state exemption laws apply. Some states protect all types of investments, some protect specific ones, and some states none at all. Sorry, but w/o knowing the state of residency it is not possible to give a more definitive answer.
How do you invest in mutual funds?
The answer depends on the type of mutual fund. Exchange Traded Funds (ETFs) are closed-end funds that trade like stocks on one of the stock exchanges. You purchase shares in these funds through a brokerage account, just as you would for any other stock. Open-end funds are available from the fund's d…istributor, and in many cases through other agents such as brokerage firms, investment advisors, retirement plans, etc. You simply call up the distributor or agent and ask for a prospectus (which you must receive before making any investment) and the necessary forms to open a new account. After filling out the forms and sending in a check for the initial investment, you are done. (MORE)
How risky is mutual fund investment?
They are as risky as stock market investments. The only good thing here is the fact that, the fund is managed by experienced professionals, therefore the chances of making a profit are better compared to us investing in stocks directly.
Why should you invest in a Mutual Fund?
By investing in a mutual fund you can diversify your investment which means that you can buy a variety of assets without paying a huge amount of money. Diversifying helps reducing the risk of your investment and at the same time enables you to cover a broad range of investments. Although there are m…any advantages of mutual funds it is important to keep costs as low as possible because most fund managers fail to perform better than the market and additional costs cut the average return of 8-10% by 1 or even 2 percentage points.Most importantly MFs are managed by professional fund managers whose choice of buy/sell call would be better than ours (In most probabilities) Because the fund is managed by professionals with experience we can expect the money to make good returns (Provided you choose a reputed fund house with a successful fund manager) (MORE)
What is the best Investment CD's or mutual funds?
It depends on your financial goals, length of time you plan onholding the investment and whether or not you want any riskinvolved. CD's are more closely related to savings than they are toinvesting. CD's are good for short term. They are the safe bet asyou obviously can not lose money. On the other… hand when you adjustfor inflation you are not making any money, you are more along theline of preventing yourself from losing money. Mutual funds have a risk but as you can guess there is no"investment" that does not and without some risk you don't standany chance of truly "making" money. These are not recommended asshort term so I would not suggest if you do not plan to hold for atleast a few years, but if you do by all means, jump in.Diversification is paramount here. Let's say you have 10,000,instead of investing all of it in one fund, it would be smarter todivide it over a few different kinds such as a growth, a value, asmall cap, a mid cap, a large cap, and a foreign. Remember that funds are long term investments and you might notcash them out until something huge such as buying a house or forretirement. In the meantime, you would continue to purchase morefunds each year and become more diverse. One other thing, alwayskeep enough to pay a couple months of bills in a savings accountfor emergencies as you do not want to be penalized for having tocancel an investment before it has had some time to mature. (MORE)
Objectives of investment in a mutual fund?
The objectives of investment in mutual funds include: .
Exposure to the stock market .
Exposure to a certain sector in the market .
Get expert investment advise .
Get good returns out of the investments
How many mutual funds are there to invest in?
There are numerous types of mutual funds that are available for investment. The Different Mutual Fund Categories in India are: 1. Equity Diversified Funds 2. Equity Midcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Eq…uity Technology Funds (IT) 8. Arbitrage Funds 9. Equity Index Funds 10. Balanced Funds 11. Monthly Income Plans 12. Debt Funds 13. Liquid Funds 14. Income Funds 15. GILT Funds 16. Gold ETFs 17. Fund of Funds - Equity Oriented 18. Fund of Funds - Debt Oriented. (MORE)
Should you continue to invest in your mutual fund?
Because of the recent increase in volatility of the market, investment risks are higher than before. If you had a portfolio that was well adjusted to your risk tolerance, the recent development in the market may have made it too risky. No one should have a portfolio that is mismatched with your risk… tolerance. It is important to check if continuing investing in your mutual funds matches your strategy and risks are relevant. You should adjust your contributions to match your revised goals. (MORE)
Why investment in mutual fund is risk less?
Mutual fund investments are not risk less. They come with their inherent risks because the money is invested in the stock market and the profit or loss in the mutual fund depends on the performance of the stocks bought by the fund house. The only point here is that, since the fund is managed b…y experts the chances of loss is less when compared to we buying/selling stocks ourself. (MORE)
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds …do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis. (MORE)
Can Muslims invest in mutual funds?
Yes they can but the sharia law of Muslims prohibits them from receiving or paying interest and hence they cannot invest in stocks of companies that do so. there are mutual funds in India that invest only in sharia compliant stocks from the Parsoli mutual fund house. They can invest in them.
What are the advantages of investing in mutual funds?
The advantages of investing a mutual fund is if one of the fundstocks or other securities performs poorly the loss can be offsetby gains in another stock or security within the mutual fund.
What is the investment purpose of mutual fund?
The role of mutual funds is to provide access to stock markets related investments to people with less money in their pockets. It is quite easy to construct a well enough diversified portfolio of stocks, if you have 1 million dollars to spend. On the other side, how could you diversify and manage ri…sk with only 1,000 dollars? It is impossible with direct investments. That is why mutual funds are here, to provide access to the financial markets to smaller private investors. Mutual funds are also great for step-by-step monthly saving/investing of smaller amounts, for example $50. The advantage of mutual funds is that they have relative fees with no absolute minimum. On the other side, buying stocks via stock broker will cost you at least a few bucks, depending on the broker you have, but in any case, this can significantly decrease your investment amount. (MORE)
Is it beneficial to invest in mutual funds?
Yes it is very beneficial to invest with mutual fund, because it is save money for your secure life.
Is it possible to diversify investment if invested in mutual funds?
Yes. They invest in lot of different shares. If you are outside India then go for direct investment in stocks or invest in Index Mutual Fund.
Can trust invest in mutual funds?
Whether or not a trust can invest in mutual funds depends on the type of trust and the provisions in the trust document that discuss trustee powers.
What is the best mutual fund to invest in?
The simplest plain vanilla fund to invest in is probably an S&P 500 Index Fund. Nobody selects the stocks to invest in, the fund just buys the stocks of the companies in Standard and Poor's list of large, publicly held companies that trade their stocks on the main American stock markets. These funds… pretty much follow the ups and downs of the general market. You should buy your fund from a fund company that doesn't charge a fee for buying and selling the fund ('no load') and charges the least in administrative costs. After all, you're not paying for an expert for an index fund. Some very popular 'no load' fund companies are: Vanguard, Fidelity and Dreyfus. Your library may have a subscription to Morningstar's analysis and ratings of mutual funds. Then you can compare the different funds for yourself and make your own choices. (MORE)
What makes a mutual fund an attractive investing option?
Because: .
They invest in the stock markets and the stock markets are one of the best investment instruments .
They are operated/maintained by a trained and experienced fund manager .
The investor need not track the movement of the stock market everyday .
It gives comfort and investment div…ersification for the investor who is not well-versed in the stock markets but still wants to invest in mutual funds (MORE)
What do in start in the investment in mutual funds in India?
Being a newbie, I would suggest you to approach some expert or some reputed financial services company providing mutual funds investment services. They will help you out in your mutual funds selection process based on your financial objective and risk-bearing capacity. Initially, it is wise to inves…t a small amount of money until you gain a grip over the market. Once you gain confidence in the the market moves, then you can invest on your own. (MORE)
What mutual funds invest in Samsung?
The mutual funds that invest in Samsung are quite a number. Themost common include American Century Emerging Markets Inv Fund,Invesco Global Growth B Fund and Fidelity Series Emerging Markets FFund among others.
What does it mean to invest in a diversified mutual fund?
It means that you are investing in a mutual fund that is professionally managed and invests in a diverse selection of stocks from different sectors of the industry. Also they may invest in all categories of stocks like mid cap, small cap or large cap.
Who can help you invest in mutual funds?
Contact your local investment advisor in your bank. He/She would be able to guide you with the investment options in mutual funds. You may require some documents like PAN card, Address proof, Identity proof and also money in your bank account to conclude the purchase of the mutual funds.
Is ok to invest in State bank of India Mutual Funds?
Yes. SBI Mutual Funds is a profitable and well performing mutual fund company in India. However all funds offered by SBI are not performing greatly so, you must look at the funds prospectus, offer document and past performance before taking your investment decision.
What is the problem with mutual fund investing?
One disadvantage of mutual fund investing is that mutual funds are not tailored to the specific investment needs or tax status of individual shareholders
What are the costs to the shareholder of investing in mutual funds?
a redemption fee is usually levied on shares held for less than a specified period. A distribution fee is a charge on current shareholders to cover the costs of advertising, promotion, selling, and other activities
What is the risk level of a mutual fund investment?
Ahh, if you don't know the answer or the risk level for a given fund you really need to speak with your broker! I don't mean to come across as being rude or anything but that is like asking what the lottery numbers for tomorrow will be... to broad a question to give any real answer - there are ten's… of thousands of funds out there and they all have different purposes! Obviously every fund has some degree of risk and some more than others (Small vs Large Cap, US vs Euro vs Asia, Growth vs Income, etc etc etc) Most funds however are safer than investing in an individual stock since your money is diversified across hundreds, even thousands of different holdings. There are far too many factors to list here and no simple answer - a better question would be what is your risk *Tolerance*? It would be a whole lot easier to recommend some funds based on the intended purpose of the investment! (MORE)
Do mutual funds always invest in stock?
mutual funds investment can be classfied on the basis of asset mix...i.e, investing in assets like stock, bonds and cash in different proportion.....depending on the proportion on each of the above asset categories, a scheme can be equity oriented, debt oriented or a balanced (hybrid) scheme......
What is mutual fund how to invest in it?
mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf… etc.....be informed wherever u invest and be a regular monitor of ur investments... (MORE)
Can banks invest in mutual funds?
They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund
Where an insurance company does invests its funds?
Insurance companies do invest there money in following ways, and they are: 1. Reinsurance in reinsurer for safety, 2. Governmant sector ( Traditional policies) and 3. Mutual funds(ULIP policies).
How is investment in mutual fund different from the bank deposit?
When you deposit money with the bank, the bank promises to pay youa certain rate of interest for the period you specify.On the dateof maturity the bank is supposed to return the principleamount.Whereas in mutual fund,the money you invest,is in turninvested by the manager.Mutual funds offers better r…eturns ascompared to a fixed deposits. (MORE)
What is the minimum initial investment for a mutual fund?
It depends from fund to fund. However, in India the most commonly used numbers are: Rs. 5000/- for first time investment & Rs. 1000/- for subsequent purchaces Rs. 500/- per month for SIP's Note: There are funds that expect a minimum Rs. 1000/- for SIP and even Rs. 25,000/- for first time investmen…t (MORE)
How is investment in mutual fund is different from the bank deposit?
When you deposit money with the bank, the bank promises to pay you the interest for the period you specificed .On the date of maturity the bank is supposed to return the principle amount and interest to you, mutual funds offers better returns as compared to the fixed deposits.So it is advisable to i…nvest in the well known funds so that you will not loose from your investment.All of the necessary information is available in the website Reliance mutual fund, ICICI, HDFC. (MORE)
How can you calculate returns on investment in mutual fund?
There are number of programs available online that enable investors to track the mutual fund. There are also many websites that provide market research to aid the investors. Reliance mutual fund has very good service like SIP calculator that allow you calculate the returns of the investment.
Why mutual fund investing is advantageous?
The primary advantage of investing in mutual fund is professional management, the investor purchase the fund because they do not have time to manage their portfolio, Mutual fund is relatively inexpensive way for small investors to get full time manager to make the investment
What is advantages and disadvantages of investing in mutual fund?
When you invest in mutual you are buying the units or portion of the mutual fund and thus on investing becomes the shareholder.There are top AMC'S which help you to know regarding this they are Reliance mutual fund, HDFC etc.
What would be the purpose of investing in mutual funds?
Mutual funds are a way for investors to invest safely. Mutual funds pool together stocks, bonds, and commodities, and investors get a piece of every thing, which makes it a safe way to invest in other things without a great loss.
What are the benefits of investing in a mutual fund?
A mutual fund allows a customer to benefit from investment classes that would not be available to a smaller investor, and allows them to receive the expertise of experts that would not be an option unless they enter a collective investment vehicle. Mutual funds are also much easier than managing one…'s own investments. (MORE)
When people invest your mutual funds they are making loans to banks and their investments are insured by the FDIC is this true or false?
Mutual funds accounts are not insured by the Federal Deposit Insurance Corporation. The FDIC only insures bank accounts (i.e., checking accounts and savings accounts, not mutual funds accounts). Anyone who invests in mutual funds is taking a certain amount of risk. Those funds can (and usually do) i…ncrease in value, but they can also decrease in value. If they decrease in value, that money is not going to be repaid by insurance. It is simply lost. (MORE)
Where may one make an investment in mutual funds?
Investing in mutual funds is very convenient and easy way to secure your future. Just by following few simple and basic steps like collecting the fundamentals of the companies can help planning the investment in mutual funds.
Where can one invest mutual funds online?
Fidelity, American Century Investments, and Scottrade all allow online investing in mutual funds. According to Wikipedia, Fidelity was also the 2nd best mutual fund as of Octoboer 2011 (preceded by Vanguard).
What are the benefits of investing in an HDFC mutual fund?
In the United Kingdom, investing in an HDFC mutual fund is often part of a larger portfolio for investors. Some of the immediate benefits of investing in these mutual funds are their often high rates of return as well as their general stability.
What kind of investment is the mutual fund?
Mutual is a kind of investment where in professional manage the collective money from many investors to purchase securities. These securities will be regulated and sold to the public.
How does one make safe mutual fund investments?
There are many ways for one to make safe mutual fund investments. Investorplace has 4 mutual funds for safety and value. Two of these are Ave Maria Rising Dividends and FMI Large Cap.
How can someone invest in Mutual funds?
One can invest in mutual funds directly from the fund AMC, or indirectly through the use of agents. Investing directly means you don't have to share any earnings with the agent, but it also means you need to do more research on the funds you wish to invest in. Investing indirectly means the agent wi…ll receive a cut of the profit, but they also find funds within your specifications. (MORE)
How can one invest in Green mutual funds?
By logging into their websites, and buying stocks you can invest in them. By searching Green Mutual Funds online, many websites allow you to invest into this, making it very easy to get hold of and invest your money into it.
Why might one invest in mutual funds?
One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.
What are the advantages of investing in Hedge Mutual Funds?
Boosts to your 401k, which means the opportunity to get more money when you retire. This may end up in a better pension plan for you, which is always a good thing.
Which are the best mutual funds to invest in?
No one person could decide on the 'best' mutual funds to invest in, as different companies offer different incentives for consumers to invest into their businesses which would appeal to other types of people.
How do you invest in mutual funds and get best mutual fund returns?
To get the best mutual fund return you should consult a financialadvisor before investing. They give you the right advice oninvestment and develop a plan that suits your needs. They also helpto optimize your mutual fund investments.