0
mutual funds provide stability to share prices safety to investors and resources?
Ankit Mittal
Hedge funds are not mutual funds as hedge funds cannot be sold to the general public
Corbin Jast
Add your answer:
Earn +20 pts
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.
How can you calculate returns on investment in mutual fund?
There are number of programs available online that enable investors to track the mutual fund. There are also many websites that provide market research to aid the investors. Reliance mutual fund has very good service like SIP calculator that allow you calculate the returns of the investment.
“Mutual Funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs.” Explain?
Let's start with the second, since it's the most direct answer. Mutual Funds are, as the name implies, a pool of resources from many investors. Because the Mutual Fund is working with money from many investors, none of the individuals who are invested in it carry all of the risk. Both gains and losses are spread among many investors, so the individual faces much less risk than if they were purchasing and selling assets individually. Furthermore, because the Mutual Fund has significantly more resources than a typical individual, they can afford to diversify into a greater number of investments, which makes it less likely that any single loss will dramatically affect the overall portfolio. And that brings us back to the first point: stability to share prices. A Mutual Fund, by its nature, is seeking sustained growth over time. Because they are so diversified, they are fairly insulated against the day-to-day changes that might affect individual investors. They are less prone to panic buys or sells, and more likely make choices that will keep their portfolio stable over time. Considering that they wield significant resources, any behavior that mutual funds undertake is likely to impact the overall market. The third point is, somewhat obviously, that they invest money. Now, simply because mutual funds prefer stable markets does not mean that they never take risks. The nature of diversification means that some of the money that they invest will be in high-risk high-reward investment vehicles, like startups. Of course, they have safer investments to cover those potential losses, which allows them to do this without significantly risking the individual investors' money.
How do mutual funds obtain capital besides investors investments and charging investors fees?
There are no other ways for mutual funds to obtain capital
What would be the purpose of investing in mutual funds?
Mutual funds are a way for investors to invest safely. Mutual funds pool together stocks, bonds, and commodities, and investors get a piece of every thing, which makes it a safe way to invest in other things without a great loss.
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 services do mutual funds offer investors?
many funds provide their investors with such services as check-writing privileges, custody (as a service), and bookkeeping. Investors also benefit from the knowledgeable investment choices of securities
What are the benefits of investing in an HDFC mutual fund?
In the United Kingdom, investing in an HDFC mutual fund is often part of a larger portfolio for investors. Some of the immediate benefits of investing in these mutual funds are their often high rates of return as well as their general stability.
How can you calculate returns on investment in mutual fund?
There are number of programs available online that enable investors to track the mutual fund. There are also many websites that provide market research to aid the investors. Reliance mutual fund has very good service like SIP calculator that allow you calculate the returns of the investment.
“Mutual Funds provide stability to share prices, safety to investors and resources to prospective entrepreneurs.” Explain?
Let's start with the second, since it's the most direct answer. Mutual Funds are, as the name implies, a pool of resources from many investors. Because the Mutual Fund is working with money from many investors, none of the individuals who are invested in it carry all of the risk. Both gains and losses are spread among many investors, so the individual faces much less risk than if they were purchasing and selling assets individually. Furthermore, because the Mutual Fund has significantly more resources than a typical individual, they can afford to diversify into a greater number of investments, which makes it less likely that any single loss will dramatically affect the overall portfolio. And that brings us back to the first point: stability to share prices. A Mutual Fund, by its nature, is seeking sustained growth over time. Because they are so diversified, they are fairly insulated against the day-to-day changes that might affect individual investors. They are less prone to panic buys or sells, and more likely make choices that will keep their portfolio stable over time. Considering that they wield significant resources, any behavior that mutual funds undertake is likely to impact the overall market. The third point is, somewhat obviously, that they invest money. Now, simply because mutual funds prefer stable markets does not mean that they never take risks. The nature of diversification means that some of the money that they invest will be in high-risk high-reward investment vehicles, like startups. Of course, they have safer investments to cover those potential losses, which allows them to do this without significantly risking the individual investors' money.
How do mutual funds obtain capital besides investors investments and charging investors fees?
There are no other ways for mutual funds to obtain capital
Can anyone provide information on mutual fund?
Almost all mutual funds have their own websites .Investors can also acess the NAV's,half yearly results and portfolio of all mutual funds at websites.There are number of websites that give lot of information of mutual fund.One of these mutual fund portals is Reliance mutual fund
Who are Zimbabwe's institutional investors?
Old Mutual
What are people who invest in mutual funds called?
They are called Mutual Fund Investors or Mutual Fund Unit Holders.
What was the PX Washington Mutual Investors Fund?
It was a mutual fund managed for principal growth
Was the Massachusetts Investors Trust the first American open-end mutual fund?
The Massachusetts Investors Trust was the first American open-end mutual fund
What are the best guides to mutual funds?
Some reputable guides to mutual funds include Morningstar, Lipper, and Zacks Investment Research. These resources can provide valuable insights, analysis, and ratings on various mutual funds to help investors make informed decisions. It's important to consider your investment goals and risk tolerance when choosing a guide that best fits your needs.
