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When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?
True. When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC.
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All Mutual funds do
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 p…rofit are better compared to us investing in stocks directly.
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 redu…cing the risk of your investment and at the same time enables you to cover a broad range of investments. Although there are many 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)
They are called Mutual Fund Investors or Mutual Fund Unit Holders.
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 Mi…dcap Funds 3. Equity Infrastructure Funds 4. Equity Banking Funds 5. Equity Pharma Funds 6. Equity FMCG Funds 7. Equity 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.
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 m…utual 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.
the dollatr cost average
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 Stand…ard 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.
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 f…und manager . The investor need not track the movement of the stock market everyday . It gives comfort and investment diversification for the investor who is not well-versed in the stock markets but still wants to 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.
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 fu…nds prospectus, offer document and past performance before taking your investment decision.
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...
In Stock Market
your money gets loaned out to businesses and companies.
In Stock Market
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 t…he principleamount.Whereas in mutual fund,the money you invest,is in turninvested by the manager.Mutual funds offers better returns ascompared to a fixed deposits.
In Mutual Funds
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 mutu…al funds accounts). Anyone who invests in mutual funds is taking a certain amount of risk. Those funds can (and usually do) increase 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.