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Q: Matual funds are good investment in long term?
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What is the importance of making short term and long term financial decisions?

When making financial decisions it is important to look at your time horizon. Certain investments may be great in the long term but bad for a short term investment. An example of this might be a very volatile investment that has large fluctuations in value. While over the long term this may be a good investment.....short term it may not. If you need funds to pay for a new house or your children's education and the investment has dropped dramatically in value at the time you need the funds this would be a bad situation to be in. It is always good to have enough liquidity to cover any need for funds on a short tem basis while maintaing other investments that you plan to hold over a longer time period.


Benefit of mutual funds?

The benefits of mutual funds is that they help you to diversify your investments and reduce investment risk as they invest in a wide range of securities. You can either generate regular income or create wealth in the long term.


How do you know if gold stock is a good idea?

Gold stock is typically a good long term investment but not a good short term investment. Price fluctations can vary to much for short term investments.


Disadvantages of mutual fund?

A mutual fund is an investment vehicle with a well defined, easy to understand investment strategy and goals. Investing in a mutual fund is only advantageous if the investment strategy and goals of the fund (or combination of funds) match that of an investor. For example, if investment is made into a fund whose goal is growth over a long term, an investor may lose a significant fraction of their investment when taking the money out too soon. A second, very important consideration is taxes. It turns out that buying mutual funds is a good idea when one is to use tax advantages of retirement plans, such as IRA, Roth IRA or 401k, 403b. The reason is that a so-called turnover ratio (or distributed gains) for a mutual fund can be quite high. If you have to pay taxes on these gains, you might end up paying tax on the income you did not receive. It is therefore recommended to use low turnover mutual funds or an entirely different investment vehicle - exchange traded funds (ETF) if investment is made in an ordinary (vs. tax privileged) account.


What is aFormula Return on long term funds?

EBIT Return on long term funds = ------------------- x 100 Long term funds

Related questions

How can I apply for equity funds?

Equity funds is one of the best form of investment for wealth management. It offer good returns over medium to long-term. You can apply for it from the bank directly.


What are some good investments?

There are several good long term investment opportunities. First, real estate is an especially good deal in this buyers market. Another good option would be long term growth stock mutual funds. If you need the money within five years, however, both of these would not be appropriate. But, for long term investment, these are both very good options.


What is the importance of making short term and long term financial decisions?

When making financial decisions it is important to look at your time horizon. Certain investments may be great in the long term but bad for a short term investment. An example of this might be a very volatile investment that has large fluctuations in value. While over the long term this may be a good investment.....short term it may not. If you need funds to pay for a new house or your children's education and the investment has dropped dramatically in value at the time you need the funds this would be a bad situation to be in. It is always good to have enough liquidity to cover any need for funds on a short tem basis while maintaing other investments that you plan to hold over a longer time period.


What is the best investment i can make with my cash annuity settlement?

Stock mutual funds have traditionaly provided the best investments over the long term. Past performance is no gurantee of future returns. There are several good investment oppurtunities available for a lump sum of cash. i would suggest an investment in real estate.


How much of the portfolio is invested in equity an inequity fund investment?

In equity funds more than 80% of the funds are invested in equities. Hence, the risk factor is higher. This is a good form of wealth management and offers unit holders with medium to long-term capital growth.


How many kinds of investments are existing?

There are different types of investments available for a quick investment option like cash investment, debt securities, Stocks trading, mutual funds, derivatives, commodities, and real estate. One need to understand the importance of investment and the risks on returns depending upon the choice of investment plans. Short term and long term investment choice makes a good difference to meet one's requirement on investment.


investment planner?

form_title=Hire an investment planner form_header=An investment planner will help you coordinate your investments and navigate the market. What are your long term investment goals?=_ Do you have any stocks or bonds?= () Yes () No What type of investments would you want to make:= [] Stocks [] Bonds [] Mutual Funds [] Other


What life policy offers the owner investment in products such as money-market funds long-term bonds and equities.?

Variable/Universal


Is Paul Revere Insurance Group TSA a good investment?

Paul Revere Insurance Group TSA is listed as a stable investment but is not a high return investment. If you are considering long-term stability, then this might be a good investment for you.


Benefit of mutual funds?

The benefits of mutual funds is that they help you to diversify your investments and reduce investment risk as they invest in a wide range of securities. You can either generate regular income or create wealth in the long term.


What accounts are available to set up a future fund?

There are a variety of accounts to set up for one's future in terms of investment funds. Investment retirement accounts (or IRAs) are one of the most common and secure means for future fund investments. Mutual funds and CDs are also popular for long term investments.


Investment scope in kundli?

Its a very good investment option to be in Kundli Haryana , the long term opportunities are far from description