0
Want this question answered?
Be notified when an answer is posted
Add your answer:
Earn +20 pts
What is the role of mutual funds in the financial market?
The role of mutual funds is to provide access to stock markets related investments to people with less money in their pockets. It is quite easy to construct a well enough diversified portfolio of stocks, if you have 1 million dollars to spend. On the other side, how could you diversify and manage risk with only 1,000 dollars? It is impossible with direct investments. That is why mutual funds are here, to provide access to the financial markets to smaller private investors. Mutual funds are also great for step-by-step monthly saving/investing of smaller amounts, for example $50. The advantage of mutual funds is that they have relative fees with no absolute minimum. On the other side, buying stocks via stock broker will cost you at least a few bucks, depending on the broker you have, but in any case, this can significantly decrease your investment amount.
Explain the role of financial intermediaries in the flow funds through the three sector economy?
In a three-sector economy consisting of business, households, and government, financial intermediaries such as commercial banks, mutual saving banks, insurance companies, mutual funds, pension funds, and credit unions provide the mechanism for reallocating funds from one surplus sector to a deficit sector. These institutions indirectly invest excess funds in areas of the economy where funds are needed.
How has the role of wall street changed in today's financial market?
how has the role of wall street changed today's financial market
Nature and role of financial institution and financial market?
nature of financial institution
What is the role of financial intermediaries and financial markets in providing capital?
the role of financial intermedieries and financial markets providing the capital is : -chaneling of funds from economic units that have saved surplus of funds to those that have shortage of funds - promote efficiency by producing an efficient allocation of capital, which increases production -mobilization of funds and converting the unprudoctive and liquid savings into the productive investments
Discuss the role of RBI in money market?
to keep liquidity in financial markets
What is the investment purpose of mutual fund?
The role of mutual funds is to provide access to stock markets related investments to people with less money in their pockets. It is quite easy to construct a well enough diversified portfolio of stocks, if you have 1 million dollars to spend. On the other side, how could you diversify and manage risk with only 1,000 dollars? It is impossible with direct investments. That is why mutual funds are here, to provide access to the financial markets to smaller private investors. Mutual funds are also great for step-by-step monthly saving/investing of smaller amounts, for example $50. The advantage of mutual funds is that they have relative fees with no absolute minimum. On the other side, buying stocks via stock broker will cost you at least a few bucks, depending on the broker you have, but in any case, this can significantly decrease your investment amount.
What are roles of financial market in Tanzania?
Financial markets have an important role in Tanzania. The markets have helped with the trade market, foreign exchange, and stock markets. The financial markets also provide people a place to invest.
What is the role of mutual fund?
The role of a mutual fund is to provide avenues of investment for the normal investor who does not have the expertise or the time to have a direct investment in the stock marketbut at the same time wants to gain exposure to the stock market for its high return potential.
What is the role of capital market to Nigerian economy?
The role of capital market to Nigerian economy is to mobilize long-term funds. To provide a mechanism for mobilizing private and public savings and makes such funds available for productive purposes.
What is the role of financial market in corporate finance?
1 providing loans and capital compiled by mr bhejana
What Roth IRA Returns Should You Expect?
Many people consider the option to open a Roth IRA because financial advisers say it is a smart thing today. Few people make financial decisions by blindly following such advice. So you may have researched what a Roth IRA is and what its benefits are. However, a common question that many people have is what Roth IRA returns they should expect from their account. This implies that some investors may not fully understand what a Roth IRA actually is.Stock Market-Based AccountWhen you consider what your Roth IRA actually is, you should consider that it actually is a lot like your 401k account. You have the flexibility to control which mutual funds, stocks and so forth are purchased with this account. Your options may be somewhat limited by the financial institution who you open your Roth IRA account with. For example, one financial institution may only offer you a few dozen mutual funds to choose from. Ultimately, however, this is a stock-based account that is subject to fluctuations in the market. The returns you realize from this account may be below market returns, in line with market returns or above market returns based on the financial decisions you made with your investment dollars.The Financial Institution MattersThe fact is that who you open your account with does play a role in the returns you will receive. Some financial institutions just offer better investments options to you than others. However, in most cases, there are some winning choices as well as some losing choices within each range of options you are provided by the different financial institutions. Because of this, the ultimate success of your Roth IRA to generate great returns does lie with you and is based on how you choose to invest your retirement funds. Because of this, you should carefully review all of the options available to you before investing your money. Further, you should also monitor your account regularly. At times, it may be advantageous to switch funds if one of your funds is under-performing. Ultimately, a wise investor may expect his or her Roth IRA to perform well, but this is not guaranteed.
