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What is an example of direct finance A. An investor calling up their broker and purchasing a bond. B. An investor purchasing a mutual fund. C. A depositor opening an account a?
A depositor opening an account
What should an investor examine in a mutual fund?
no
How much research should be done before purchasing mutual funds?
When purchasing mutual funds. I would suggest you do some type of research. Having a personal accountance is a great way to start this project; he or she will have the answers you may be looking for.
In a fixed annuity an investor can choose from many options usually in mutual funds?
variable
How do you select a mutual fund?
The first step is to find out the objectives of the investment. The objectives of an investment in mutual funds will be low risk or high risk, short or long term focus on liquidity, fixed income or equity. If the objectives of the investment are the same as that of the investor, then one can go on to the next step. It is very important to evaluate the past performance of the mutual fund. Through this evaluation the investor can get an idea of how the performance of the fund compares to other available options. One can also determine if the objectives that are stated have been fulfilled. This can be achieved by finding out which mutual funds have performed the best in the market. A good mutual fund should have a track record of consistently outperforming its benchmark. It is also a good idea to evaluate the performance of the mutual funds over a number of different periods of time. These could be three months, one year or three years depending on what period the investor wishes to keep his investment. The mutual funds that fall among the top five should then be shortlisted by the investor. The third step to choose a good mutual fund is diversification. An investor must diversify his funds in order to expand the amount of investment. This means that the investor should select two or more mutual funds that have similar investment objectives. This will help the investor to minimize the risks involved with his investments. Before choosing a Mutual Fund, the investor should examine the costs of the fund. These include sales loads, annual fund expenses and also management fees. There are a lot of Online trading portals that are listed with the NSE and BSE that help you to choose the right funds by providing all the necessary market information. Reliance Mutual Funds, ICICI, HDFC, Franklin Templeton are some of the best that are available. Reliance Mutual Funds provides a lot of information to investors through their knowledge centre.
Are mutual funds insured?
No they are not. Mutual funds are stock market investments and hence they are not insured. There is always a possibility of an investor suffering a loss if the mutual fund house makes wrong investment decisions.
Can a mutual fund investor use a regular account to purchase shares in an open-end fund?
No
What has the author Stuart B Mead written?
Stuart B. Mead has written: 'Mutual funds; a guide for the lay investor' -- subject(s): Mutual funds
How should I learn how to invest in mutual funds?
You can lean about how to invest in mutual funds on the following website: http://www.sec.gov/investor/pubs/inwsmf.htm. They have great tips.
What has the author Stanley L Kaufman written?
Stanley L. Kaufman has written: 'Practical and legal manual for the investor' -- subject(s): Law and legislation, Mutual funds, Securities 'The investor's legal guide' -- subject(s): Law and legislation, Mutual funds, Securities
Why are mutual funds popular among investor?
Reduce risk, portfolio diversification, low transaction cost
Picking the Right Fund?
The right mutual fund pick is the mutual fund in an industry which you understand. The right mutual fund also has a management team that is easily found and vetted online, and one which you personally trust and who shares your risk profile. You can also easily check the top holdings of any mutual fund before purchasing. If these are not securities that you would consider purchasing individually, then there is no real reason for you to invest in the mutual fund either. Make sure to compare the top ranking funds in your industry in order to get the absolute best pick.
