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There are many ways of buying/selling mutual funds:
- By visiting the sales office of the fund house and submitting documentation to execute the buy/sell order
- By asking for a registered mutual fund agent to visit you and finish the formalities w.r.t buying or selling them
- By logging into your online trading account and buying/selling online
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How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
A blank is invested by managers in a diversity of stocks bonds and other securities?
A fund invested by managers in a diversity of stock, bonds, and other securities is called a mutual fund. Most mutual funds are open-ended which means that stockholders may purchase or sell shares at any given time.stockholders can buy or sell shares of the fund at any time
What is the difference between close ended mutual fund and open ended mutual funds?
An open end mutual fund generally continues to accept investment after the fund is started. As this happens, the fund can grow larger as more investors buy shares in the fund. The open end fund then takes those new dollars and buys additional securities. Shares are priced at the end of day by taking the value of the fund's net asset value divided by the number of shares outstanding. Each share is thus priced at par value to the underlying investments in the fund. To "cash-out" of one's investment, the shares are redeemed by the fund itself, usually after trading is over for the day at the net asset value price for that day. Occasionally, if management of an open end fund feel cash is flowing into the fund to quickly, they may close the fund to new investment, but is still classified as an open end fund. A closed end mutual fund generally accepts investment only during initial setup. After that, shares in the fund are bought and sold similar to a stock on one of the exchanges. The shares may sell at a discount or a premium to the underlying securities owned by the fund, depending on the market. To "cash-out", an investor sells the shares on the exchange at the market price during the trading day. The fund itself is not involved in the day-to-day sale and purchase of fund shares.
What is difference between equity trading and mutual fund?
Equity trading is when you buy and sell shares yourself, via a stockbroker and hold the shares directly in your name. All dividends paid out by the company in which you hold shares will be paid directly to you. A mutual fund investment is your share (in units) of pooled monies contributed by many investors. These pooled monies are managed by an investment company, which then invests them on behalf of it's unit holders, usually across a selection of publicly listed stocks, bonds, listed property and other financial derivatives ie. you hold these investments indirectly. The units you buy in the mutual fund are in your name, but the investments the fund buys with the pooled monies are held in the fund's name. As the funds assets increase or decrease in value, so will the price of your units held in the mutual fund. The fund usually pays you a distribution of profits at set periods, which can vary greatly in amount from year to year.
Why own a mutual fund rather than individual stocks?
Diversity. The point of a mutual fund is to spread out your risk. If you buy $10,000 worth of shares of an individual stock, and that company goes bankrupt, you lose the entire amount. If you buy $10,000 worth of shares in a mutual fund, it will be invested in a variety of different companies, so if one goes bankrupt your shares in the mutual fund might still be worth say $9900, depending on how much the mutual fund had invested in that particular company. Investing in a mutual fund consists largely of choosing one. Once you've done that, that's pretty much it: the fund manager will take care of all the buying and selling details. If you invest in individual stocks, you will need to manage your own portfolio. If you're shrewd (or lucky), you may be able to do better managing your portfolio yourself, but you'll probably have to do more work in order to do so.
How and where to sell a closed ended mutual fund?
A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.
A blank is invested by managers in a diversity of stocks bonds and other securities?
A fund invested by managers in a diversity of stock, bonds, and other securities is called a mutual fund. Most mutual funds are open-ended which means that stockholders may purchase or sell shares at any given time.stockholders can buy or sell shares of the fund at any time
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 is the difference between close ended mutual fund and open ended mutual funds?
An open end mutual fund generally continues to accept investment after the fund is started. As this happens, the fund can grow larger as more investors buy shares in the fund. The open end fund then takes those new dollars and buys additional securities. Shares are priced at the end of day by taking the value of the fund's net asset value divided by the number of shares outstanding. Each share is thus priced at par value to the underlying investments in the fund. To "cash-out" of one's investment, the shares are redeemed by the fund itself, usually after trading is over for the day at the net asset value price for that day. Occasionally, if management of an open end fund feel cash is flowing into the fund to quickly, they may close the fund to new investment, but is still classified as an open end fund. A closed end mutual fund generally accepts investment only during initial setup. After that, shares in the fund are bought and sold similar to a stock on one of the exchanges. The shares may sell at a discount or a premium to the underlying securities owned by the fund, depending on the market. To "cash-out", an investor sells the shares on the exchange at the market price during the trading day. The fund itself is not involved in the day-to-day sale and purchase of fund shares.
Where can I buy mutual funds online at?
There are several sites that offer information about mutual funds available. One of the best is www.mint.com/invest/mutual-funds/. It is a free site that tells what a mutual fund is & how to buy or sell them online.
What is difference between equity trading and mutual fund?
Equity trading is when you buy and sell shares yourself, via a stockbroker and hold the shares directly in your name. All dividends paid out by the company in which you hold shares will be paid directly to you. A mutual fund investment is your share (in units) of pooled monies contributed by many investors. These pooled monies are managed by an investment company, which then invests them on behalf of it's unit holders, usually across a selection of publicly listed stocks, bonds, listed property and other financial derivatives ie. you hold these investments indirectly. The units you buy in the mutual fund are in your name, but the investments the fund buys with the pooled monies are held in the fund's name. As the funds assets increase or decrease in value, so will the price of your units held in the mutual fund. The fund usually pays you a distribution of profits at set periods, which can vary greatly in amount from year to year.
Why own a mutual fund rather than individual stocks?
Diversity. The point of a mutual fund is to spread out your risk. If you buy $10,000 worth of shares of an individual stock, and that company goes bankrupt, you lose the entire amount. If you buy $10,000 worth of shares in a mutual fund, it will be invested in a variety of different companies, so if one goes bankrupt your shares in the mutual fund might still be worth say $9900, depending on how much the mutual fund had invested in that particular company. Investing in a mutual fund consists largely of choosing one. Once you've done that, that's pretty much it: the fund manager will take care of all the buying and selling details. If you invest in individual stocks, you will need to manage your own portfolio. If you're shrewd (or lucky), you may be able to do better managing your portfolio yourself, but you'll probably have to do more work in order to do so.
Investing in mutual fund gets you voting rights in all shares bought by the fund?
Nope. It does not. You will get voting rights only if you buy them yourself in your Share Trading Account directly from the stock market
What are the two best mutual fund companies in America to buy mutual fund for your ROTH IRA?
vanguard
How can you Relate bank with mutual fund share market?
Banks, Mutual Funds & Share Market - All three play a very vital part in the Nations economy and are interrelated to one another. A Bank is a place where # People Save money # People Buy Mutual fund products (These days most banks offer such services) # People open DEMAT accounts using which they can trade in Shares & other securities A Mutual Fund is # A common pool of money collected from investors and invested into the stock market by qualified fund managers Share Market is # The place where investors go to buy/sell stocks and other securities
What does a fund consist of?
A mutual fund consists of shares of company stocks. Investors can buy shares of funds and so own a small part of more stocks. There are other types of funds: bond funds, real estate funds, money market funds for example.
Mutual fund manager?
A Mutual Fund Manager is the person employed by the AMC to handle the investment decisions for a mutual fund. His job is to do research on the stocks and to come up with buy/sell calls on the stocks to ensure that the investors interest and profit is kept in mind. He is entirely responsible for making profit out of the investors money.
