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Q: Is a sinking fund what makes money grow over time?
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What makes people start a business?

The desire to earn profit, grow their money and investments are the causes of people to start a business.


What is a Contra Mutual Fund?

A Contra Fund is another type of Equity Mutual fund that has a contrarian view to investment which is supposed to be the opposite of the view that regular MF's take. Theoretically speaking, a contra fund is one that invests in stocks that are out of favour with investors and are being sold/avoided by them but have the potential to grow in the long term. A regular MF manager will avoid such stocks while the fund manager of a contra fund will go in search of such stocks


What is a Class T mutual fund?

T-class funds are tax efficient versions of some of fund company's existing funds. These pay a set monthly amount based on the manager or fund company's realistic expectation of the fund's future performance. Typically, a portion of this distribution is treated as a return of capital, which is not immediately taxable. Conversely, the return-of-capital amounts are deducted from the cost base of the fund. This will increase the capital gain when the fund is eventually sold. The other negative is that in periods of poor performance, the fund value may not grow enough to offset the amounts distributed. This would result either in a drop in the fund's net asset value per share or a distribution cut.


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.


Can money grow exponentially forever?

Just as money can increase exponentially, it can also decrease exponentially! The USA had a small Depression in the 1880s, and the Great Depression in the 1920s. So while money can grow wildly, it can also wither and dry up.

Related questions

Does sinking fund makes money grow by adding interest to previous interest earned?

A sinking fund makes money grow over time by adding interest to previous interest earned. ... The rate of return matters when it comes to compound interest.


Money never grow on trees?

physicly, money doesn't grow on trees. but money is made out of paper, and paper comes from trees. so money doesn't grow on trees but the trees make paper, which makes money. hope u enjoyed ur answer!


Did mutual fund assets grow in 1996?

Mutual fund assets continued to increase rapidly in 1996


Why should one consider getting a bond fund?

There are a few different reasons one should consider getting a bond fund. A bond fund is issued by the government in order to help bolster the economy. They can only grow in value and it is a great way to make some money in a safer way than stocks.


What are mutual funds and where can I purchase them?

A mutual fund is basically a fund that you put your money into with a set percentage rate that allows your investment to grow into a larger amount. Contact a personal finance advisor or even your local bank, they have people trained to help you find the best investment for you.


Does money grow on food?

No, money does not grow on food.


Do money plants actually grow money?

Yes, Money Plants do grow because I actually let it grow and I got money. (truth)


What makes people start a business?

The desire to earn profit, grow their money and investments are the causes of people to start a business.


What makes mold grow on beans?

What makes mold grow on beans?


What makes you grow and what makes you shrink?

what makes us grow, what makes us grow is if we eat or drink or develop in any way that's why we need to eat other we will die and if we don't grow we will die too.


What makes water beads grow?

water makes water beans grow.


What makes chameleons grow?

the same thing that makes us grow...Cell Division