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Are open-end funds the same as mutual funds?
Often referred to as the mutual fund industry, the open-end fund industry comprises about 95 percent of the mutual fund 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 .
How do no load mutual funds work?
No load mutual funds are mutual funds that are sold directly by the investment company instead of by an investment broker. They work exactly the same as regular mutual funds.
Is the investment of mutual funds risky?
Yes they are. Since mutual funds invest in the stock market they carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.
How are mutual funds and single stocks the same?
They are not the same.
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
Are bonds the same as mutual funds?
No, bonds and mutual funds are different types of investment tools. Mutual funds are made up of a variety of stocks, while bonds are not made up of stocks.
Why investment in mutualfund is riskless?
No, mutual fund investments are not riskless.Since mutual funds invest in the stock marketthey carry the same risk that stock market has. If the price of stocks tumbles due to some reason, the value of a mutual fund goes down and hence our investment worth also goes down. Certain type of funds like debt funds and balanced funds do not bear the brunt of a stock market collapse but they suffer losses too, during an economic crisis.Since an experienced financial expert is investing on our behalf the chances of us suffering a loss is considerably reduced but it is not RISKLESS
Is a Mutual Fund Right for You?
The mutual fund is a bundle of investments that are taken together for the purposes of dealing out interest related profits to investors. Mutual funds are known in the common knowledge as a "safe" type of investment, primarily because of the low maintenance required by the investor to keep the mutual fund. However, this common definition of the mutual fund has been shattered by the recent events in the market; namely, the Great Recession and the US debt crisis, both of which rocked the market so much as to shake mutual funds from their safe perch. A mutual fund must be researched the same as any other investment, only with a mutual fund, one must research the investment team.
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 the features of alternative energy mutual funds?
Alternative energy mutual funds behave basically the same as regular mutual fund. The features that make them different are that they are based on environmentally friendly energy sources or must be connected to environmentally friendly products.
Is a money market fund the same as a mutual fund?
A money market fund is a mutual fund, but behaves a little different than most fund.
