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Stock mutual funds are a good way to get started once you understand a little bit more about them. You can find out more information about them at Investopedia.

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Q: Are stock mutual funds a good investment?
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Objectives of investment in a mutual fund?

The objectives of investment in mutual funds include:Exposure to the stock marketExposure to a certain sector in the marketGet expert investment adviseGet good returns out of the investments


Growth of mutual fund in Indian capital market?

Mutual funds are a good means of investing in the stock market for people who lack investment knowledge as well as time to follow the markets. Because of the convenience it offers and the returns on investment it has provided over the past few years, investors all over the country invest heavily through mutual funds. Especially with the addition of ELSS funds to income tax benefit mutual fund investments have increased manifold.


What are some of the best mutual funds available?

There are many good mutual funds available. According to CNN, some of the best mutual funds available include the American Funds American Mutual A and Sound Shore.


Disadvantages of mutual fund?

A mutual fund is an investment vehicle with a well defined, easy to understand investment strategy and goals. Investing in a mutual fund is only advantageous if the investment strategy and goals of the fund (or combination of funds) match that of an investor. For example, if investment is made into a fund whose goal is growth over a long term, an investor may lose a significant fraction of their investment when taking the money out too soon. A second, very important consideration is taxes. It turns out that buying mutual funds is a good idea when one is to use tax advantages of retirement plans, such as IRA, Roth IRA or 401k, 403b. The reason is that a so-called turnover ratio (or distributed gains) for a mutual fund can be quite high. If you have to pay taxes on these gains, you might end up paying tax on the income you did not receive. It is therefore recommended to use low turnover mutual funds or an entirely different investment vehicle - exchange traded funds (ETF) if investment is made in an ordinary (vs. tax privileged) account.


What are the best mutual funds one can buy?

Mutual Funds are a good way to start and learn about investing money and watching it bloom. The most popular and considered nest mutual funds are those with Fidelity, TD Ameritrade, and Vanguard.

Related questions

Objectives of investment in a mutual fund?

The objectives of investment in mutual funds include:Exposure to the stock marketExposure to a certain sector in the marketGet expert investment adviseGet good returns out of the investments


Whats the need of investing money in mutual funds?

There is no mandated need to invest money in mutual funds. It is upto the individual to decide as to whether he wants to invest in them or not.Mutual funds are good investment instruments for investors who do not have the time or expertise to invest in the stock market but at the same time want to take advantage of the returns given by the stock market


Why should you invest in the mutual fund when you can directly invest in the same instrument?

As all the other instruments in equity and debts even mutual funds carry risk, but mutual funds are considered a better option because ,you investments will be managed by the professional managers who are in the better positions and they can spread your investment across various sectors around the market .Thus we can say that mutual funds are best option of investment in which few mutual funds like reliance mutual funds and DSP mutual funds are good players in the market .


Growth of mutual fund in Indian capital market?

Mutual funds are a good means of investing in the stock market for people who lack investment knowledge as well as time to follow the markets. Because of the convenience it offers and the returns on investment it has provided over the past few years, investors all over the country invest heavily through mutual funds. Especially with the addition of ELSS funds to income tax benefit mutual fund investments have increased manifold.


What are the best guides to mutual funds?

Some reputable guides to mutual funds include Morningstar, Lipper, and Zacks Investment Research. These resources can provide valuable insights, analysis, and ratings on various mutual funds to help investors make informed decisions. It's important to consider your investment goals and risk tolerance when choosing a guide that best fits your needs.


Who benifits from mutual funds?

Everyone benefits from mutual funds. Investors gain from these funds because they stand to reap the benefits of investing in the stock market. The stock market benefits because there are more people investing in the stock market. The economy benefits because there is more money in circulation which is good for the overall economy of the country.


What is the best investment i can make with my cash annuity settlement?

Stock mutual funds have traditionaly provided the best investments over the long term. Past performance is no gurantee of future returns. There are several good investment oppurtunities available for a lump sum of cash. i would suggest an investment in real estate.


Is mutual fund a valuable tool for novice investors?

Yes, a mutual fund is a valuable tool for novice investors because they do not have much experience in stock market investments and they don't know when to buy or sell shares. But mutual funds are managed by experienced fund managers so they can do the best with your investment and give you very good returns.


What are some of the best money market funds?

Research has shown that there are a few money market funds that are said to be good investments although it is expected that 2013 will provide low interest. Some that one could consider are Treasury Funds, Diversified Taxable Funds and Tax Free Funds.


What are some of the best mutual funds available?

There are many good mutual funds available. According to CNN, some of the best mutual funds available include the American Funds American Mutual A and Sound Shore.


What are some good investments?

There are several good long term investment opportunities. First, real estate is an especially good deal in this buyers market. Another good option would be long term growth stock mutual funds. If you need the money within five years, however, both of these would not be appropriate. But, for long term investment, these are both very good options.


What are some online investment tools that schwabcom offers?

Schwab offers many investment tools. Some, but not all, include trade stocks, bonds, and mutual funds. It is a very good website to visit for investment tools.