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How would the risk of investing in a single stock compare with the risk of investing in a mutual fund?
Wiki User
∙ 12y ago
If you are a serious investor you shouldn’t diversify. If you arent a stock riots investor you should diversify. A low cost index fund far outperforms most hedge funds and mutual funds over the long term. But volatility does not measure risk at all. Risk is measured by the actual risk of the business such as competitor.
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Howell Green
NoahsWoodCreations U...
Wiki User
∙ 12y agoInvesting in Mutual Fund is less risky due to diversification and professionally managed.
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Is Demat account compulsory for mutual fund SIP Investments?
A demat account is necessary for stock market but not required for mutual funds including SIP. For investing in Mutual funds you need to submit your KYC documents. If you are interested in investing in stock market or mutual funds,
Why are mutual funds not insured?
Because mutual funds are stock marketinstruments and stock market investments cannot be insured. A stock market is unpredicatable and can go either way and hence insurance companies do not provide coverage against losses incurred in the stock market. That is why all mutual fund houses say:Mutual fund investments are subject to market risks. Please read the offere document carefully before investing.
Canadian mutual fund interest is compounded daily?
AnswerSince there are no guarantees associated with investing in a mutual fund, the interest does not work the same as say a GIC. The mutual fund is subject to the day to day activities of the stock market, increasing or decreasing in value on a day to day basis.
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 instrumentsThey are operated/maintained by a trained and experienced fund managerThe investor need not track the movement of the stock market everydayIt 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
Where can you learn more about investing in stocks?
You can learn the basics of stock investing on Money works4me's Stock Shastra Blog , a space where you will find interesting posts on timeless principles of stock investing which will empower you to be a sensible stock investor.
Is Demat account compulsory for mutual fund SIP Investments?
A demat account is necessary for stock market but not required for mutual funds including SIP. For investing in Mutual funds you need to submit your KYC documents. If you are interested in investing in stock market or mutual funds,
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 way to get started on the stock market online?
One of the best ways for beginners to get started investing in the stock market is to put money in an online investment account, which can then be used to invest in shares of stock or stock mutual funds. With many brokerage accounts, you can start investing for the price of a single share. Send an email to kesbsconcept@ g mail .com
How do you get started in stock investing?
The best advice you can get when talking about stock investing is be perseverant. Also, there is no perfect way to do stock investing. However, there are a few basic steps you can follow:1-save money2-open a stock account3-fund your stock account4-select and purchase mutual funds or stocks5-save more money6-buy more stocksAnd on it goes... With time, you will get better and better at it. Like the saying goes: practice makes perfect!
How do mutual funds work?
Mutual Funds work to invest in a type such as stock or bonds or sector with much less risk than investing in individual securities. Sources: http://www.amfi.com http://www.morningstar.com/
What site let's you compare stock brokers?
The following sites offer information for comparing stock brokers: www.stockbrokersrated.com/; http://investing-school.com/review/compare-online-brokers/; www.fool.com/investing/brokerage/picking-a-broker.aspx. You can study these sites and choose the broker whom you find would do the most profiteering service for you.
Why are mutual funds not insured?
Because mutual funds are stock marketinstruments and stock market investments cannot be insured. A stock market is unpredicatable and can go either way and hence insurance companies do not provide coverage against losses incurred in the stock market. That is why all mutual fund houses say:Mutual fund investments are subject to market risks. Please read the offere document carefully before investing.
Why mutual funds in India are still under penetrated as compared to those in US?
This is because of the lack of awareness about the stock markets among the majority of the Indian population. Many people still do not know much about the stock marketor investing in it through mutual funds and hence mutual fund penetration in India is still not as high as in the US
Canadian mutual fund interest is compounded daily?
AnswerSince there are no guarantees associated with investing in a mutual fund, the interest does not work the same as say a GIC. The mutual fund is subject to the day to day activities of the stock market, increasing or decreasing in value on a day to day basis.
How do you calculate beta in mutual funds?
Check out these websites: http://faculty.babson.edu/academic/Beta/CalculateBeta.htm http://www.money-zine.com/Investing/Stocks/Stock-Beta-and-Volatility/
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 instrumentsThey are operated/maintained by a trained and experienced fund managerThe investor need not track the movement of the stock market everydayIt 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
Where can one go to learn how to invest stocks?
The books Stock Investing For Dummies and The Complete Idiot's Guide to Stock Investing provide basic information on stock investing in layman's terms.
