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Q: How do mutual funds provide returns to their shareholders?
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Do shareholders own mutual funds?

Although mutual funds are usually initiated and often indirectly managed by investment companies, shareholders own the funds


What is the purpose of Canadian mutual funds?

The purpose of Canadian Mutual Funds are to provide an investment fund program which is funded by shareholders that trades not only in diversified holdings but is also professionally managed.


What is meant by mutualfunds?

Mutual funds are types of programs in which is funded by specific shareholders and managed professionally. These mutual funds are usually quite diversified to reduce risks.


Mutual funds provide stability to share prices safety to investors and resources to the prospective entrepreneurs Critically examine this statement with suitable examples?

Mutual funds are platforms that pool in a set of investors money and invest in stocks and securities for mutual benefit of all the investors and the fund as a whole. Mutual funds are of various types such as debt funds, equity funds, mix funds etc. Mutual funds usually invest in a variety of stocks and the same is difficult to be achieved by an individual investor. Investing in a variety of stocks provides stability of prices, safety of returns majorly due to diversification. Also, mutual funds are governed by laws and regulations that assures the investors of safety and security. Since, mutual funds are able to pool in funds from a large group of investors they provide financial resources to a companies and entrepreneurs.


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

Related questions

Do shareholders own mutual funds?

Although mutual funds are usually initiated and often indirectly managed by investment companies, shareholders own the funds


What is the purpose of Canadian mutual funds?

The purpose of Canadian Mutual Funds are to provide an investment fund program which is funded by shareholders that trades not only in diversified holdings but is also professionally managed.


What is meant by mutualfunds?

Mutual funds are types of programs in which is funded by specific shareholders and managed professionally. These mutual funds are usually quite diversified to reduce risks.


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.


On what basis are mutual funds taxed?

shareholders are taxed on the distribution of fund's income. For tax purpose, mutual funds distribute their net income to the shareholders in two ways: (1) dividend and interest payments and (2) realized capital gains.


Mutual funds provide stability to share prices safety to investors and resources to the prospective entrepreneurs Critically examine this statement with suitable examples?

Mutual funds are platforms that pool in a set of investors money and invest in stocks and securities for mutual benefit of all the investors and the fund as a whole. Mutual funds are of various types such as debt funds, equity funds, mix funds etc. Mutual funds usually invest in a variety of stocks and the same is difficult to be achieved by an individual investor. Investing in a variety of stocks provides stability of prices, safety of returns majorly due to diversification. Also, mutual funds are governed by laws and regulations that assures the investors of safety and security. Since, mutual funds are able to pool in funds from a large group of investors they provide financial resources to a companies and entrepreneurs.


What are debt mutual funds?

Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.


What are the annual percentage rates for mutual funds that have matured for over 10 years?

A mutual fund isn't an investment that "matures". The returns of a mutual fund are based on the returns of its component stocks.


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 debt funds?

Debt mutual funds are like Equity mutual funds with one main difference. Equity mutual funds buy shares whereas Debt mutual funds buy bonds and other debt products. So the returns on investment would be similar to what a bank would give us.


mutual funds provide stability to share prices safety to investors and resources?

Hedge funds are not mutual funds as hedge funds cannot be sold to the general public


Which online bank offers the highest rate of return on mutual funds?

There are variety of rates of returns for mutal funds. Fool.com rates historical prices of mutual funds including fees charged.