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Pan card no is must for n r e n r i for investing in mutual fund?
Wiki User
∙ 13y ago
yes it is a must.
Wiki User
∙ 13y ago
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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.
Understanding Mutual Funds?
A mutual fund is an investment fund that is professionally managed and raises capital from a wide variety of investors. A mutual fund is often a preferred investment over individual securities because the investment provides its investors with a diverse investment. When looking at investing in a mutual fund, there are several aspects that an investor should take into consideration. The first aspect of a mutual fund that an investor should understand before investing is the mutual funds investment strategy. Each fund must follow a certain investment strategy, although the strategies can vary significantly from one fund to the next. Some mutual funds are growth funds which aim for high returns, but accept high risk. Other funds are more secure, but offer lower potential returns. Regardless of the investment strategy, a mutual fund will invest in a wide variety of securities, which helps diversify the investments. Each fund manager will select their own balance of high and low risk securities. The second aspect of a mutual fund which must be considered is the history of the fund. Each fund manager should be able to provide a potential investor with a report of average returns. The report should show returns received over the past year, three year, and five year periods. Furthermore, the investor should get a strong understanding of the dividend that they can expect to receive each year. An investor should also research online and see if any other investors have large complaints about the fund or the fund manager. An investor who wants to invest in a mutual fund also needs to get a strong understanding of the expenses associated with the mutual fund. The expenses that you will be charged can have a large impact on the total return that you will receive. Some of the mot common fees that are charged are management fees, service fees, broker fees, and other fees such as legal and accounting fees.
What is front ended load mutual fund?
A front ended load mutual fund that charges a sales of charge that must be paid when a person buys a investment.This reduces the amount of shares that can be purchased,but it is better for long term investors.A fund end load mutual fund will also charges a smaller 12b-1 fee is also know as distribution fee.When considering mutual fund there are lot of AMC that offer good schemes for both long term as well as short term investors. Check out Reliance mutual fund which is fast emerging as one of the best mutual fund companies in the country.
What is a non load mutual fund?
A no-load mutual fund is one that does not charge a fee to investors. Many mutual funds have a "load" or initial fee, often around 5%, that investors must pay in order to buy in to the fund. No-load mutual funds lack this fee, and earn money for their managers in different ways. Most index funds are no-load funds.
Can anyone please tell you about front end load mutual fund?
A fund end load mutual fund Is a fund that charges a sales charge that must be paid when a person buys a investment. This reduces the shares that can be purchased, but its better for long term investment. There are also low front end load fees which are best for short term investors. There are many websites which provide information such as Reliance mutual fund, ICICI, HDFC.
What is a medallion signature?
it is a bonded guarantee that your signature is actually your signature. It is used often in the securities market...for instance, if you own a mutual fund, and you move, and you then try to sell off some of the fund, you must wait at least 30 days after you submit your new address to the mutual fund company. If you want the money sooner than that, you must affix a medallion signature guarantee.
What is medallion guarantee?
it is a bonded guarantee that your signature is actually your signature. It is used often in the securities market...for instance, if you own a mutual fund, and you move, and you then try to sell off some of the fund, you must wait at least 30 days after you submit your new address to the mutual fund company. If you want the money sooner than that, you must affix a medallion signature guarantee.
What is medallion signature guarantee?
it is a bonded guarantee that your signature is actually your signature. It is used often in the securities market...for instance, if you own a mutual fund, and you move, and you then try to sell off some of the fund, you must wait at least 30 days after you submit your new address to the mutual fund company. If you want the money sooner than that, you must affix a medallion signature guarantee.
What is a medallion signature guarantee?
it is a bonded guarantee that your signature is actually your signature. It is used often in the securities market...for instance, if you own a mutual fund, and you move, and you then try to sell off some of the fund, you must wait at least 30 days after you submit your new address to the mutual fund company. If you want the money sooner than that, you must affix a medallion signature guarantee.
Must mutual funds be held in street names?
Mutual funds must be held in a person's real name. This is the name on their birth certificate, or found on their drivers license, or other form of identification.
Best Vanguard Mutual Funds You Can Buy with Dividends?
For the skeptical investor out there, mutual funds can be the perfect investment. An investor is not constrained to investing in any particular stock, and he or she can also receive dividends. Here you can find a quick review of the top Vanguard mutual funds that offer dividends on a monthly or quarterly basis.Vanguard Windsor II Fund The Vanguard Windsor II Fund is perfect for the investor with a moderate approach to risk. This fund is conscious of valuable large-cap stocks. The minimum investment required for the Vanguard Windsor II Fund is $3,000, making it an affordable option for a student or young professional. The largest holdings in this fund are IBM, Pfizer, Chase, Wells Fargo, and Intel. The fund has grown at a consistent rate of 3% to 4% over the last 10 years.Vanguard Total Stock Market Index Fund This fund is also good for the conservative or moderate investor. It also has a minimum investment of $3,000, and each share is currently valued at $35.00. This fund also places a premium on investing in high quality companies. The largest holdings in this fund are Microsoft, Exxon Mobil, Apple, General Electric, and Johnson and Johnson.Explorer Value FundThe Vanguard Explorer Value fund has dramatically increased profits in the last couple years. In the past year, this fund has enjoyed an increase of 22%. The risk associated with this fund is greater than any other fund out of the Vanguard mutual fund family. With assets of over $137 million, this fund has become very attractive to aggressive investors. Some of the holdings in this fund are Teleflex, Silgan Holdings, and Lexmark. To buy into this fund, investors must invest at least $3,000.In choosing a mutual fund posed to grow, consider the reputation of the company. A company like Vanguard is one of the most reputable in the industry, because it offers consistent returns on its financial instruments. Also, be sure to see who the specific managers of the fund are. Is it someone with extensive experience in the finance world, or is it someone without a clear background? Make sure the fund also has adequate assets for creating revenue. A fund should always have assets of at least $100 million to be able to yield profits to investors.An investor should always consider his or her risk approach prior to choosing a mutual fund as well. Do no be taken with mutual funds that have large percentage increases in the past year, because they may take a risky approach to investing.
How do you reconcile a money market mutual fund account?
One must first allow the fund to transverse itself to a standard pension-based stock option. Once this has been accomplished, one can effectively utilize the money market account to fund a subsequent convertible bond. With all of the prior funds from the former mutual fund account transferred to the convertible account, the monies may then be reverted back to any standard bank account. This, in essence reconciles a money market mutual fund account. Rye
