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Q: What should an investor examine in a mutual fund?
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What is mutual fund research?

Mutual fund research involves the study of all available information. It should begin with a review of the mutual fund's prospectus. This document will offer the investor a wealth of information about the management of the fund, how the fund invests, the cost of ownership (fees and expenses) as well as information about the the fund's holdings. The potential investor may also use the web to gain opinions, how the markets are impacting the fund and recent news about the fund. All of this information helps prospective investors make the correct choice for their risk profile and investment goals.


Why mutual fund investing is advantageous?

The primary advantage of investing in mutual fund is professional management, the investor purchase the fund because they do not have time to manage their portfolio, Mutual fund is relatively inexpensive way for small investors to get full time manager to make the investment


What is a fund house?

A fund house is a company/firm that owns and operates a mutual fund. They own the fund and decide on the investment strategies to be followed with the money that was collected from the investor public for the fund.


Difference between NFO and mutual fund?

NFO is the first stage in the life of a mutual fund. A mutual fund becomes an active fund only after the New Fund Offering (NFO) is complete. An NFO is an option where people invest in the fund house for the first time. Once the fund house gets established, then there is no NFO, any investor can contact the fund house and buy the fund.


What are the main advantages of using the Washington Mutual Fund?

A Washington Mutual Fund sports advantages such as low fees, low risk, and steady growth. Though it is important to note that Mutual Funds to do not provide the investor with much flexibility.

Related questions

Difference between eqity fund and mutual fund?

Equity is the owners fund and mutual fund is pool money from the investor and invest in securities market. mutual fund has low risk an depends upon market condition.


Can a mutual fund investor use a regular account to purchase shares in an open-end fund?

No


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.


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 mutual fund research?

Mutual fund research involves the study of all available information. It should begin with a review of the mutual fund's prospectus. This document will offer the investor a wealth of information about the management of the fund, how the fund invests, the cost of ownership (fees and expenses) as well as information about the the fund's holdings. The potential investor may also use the web to gain opinions, how the markets are impacting the fund and recent news about the fund. All of this information helps prospective investors make the correct choice for their risk profile and investment goals.


Why mutual fund investing is advantageous?

The primary advantage of investing in mutual fund is professional management, the investor purchase the fund because they do not have time to manage their portfolio, Mutual fund is relatively inexpensive way for small investors to get full time manager to make the investment


What is a mutual fund Is it a safe investment?

A mutual fund is when a company takes money from many investor's and pools it together to invest in stocks, bonds and other assests. Mutual Funds can be risky because they are not insured by the FDIC.


What is a fund house?

A fund house is a company/firm that owns and operates a mutual fund. They own the fund and decide on the investment strategies to be followed with the money that was collected from the investor public for the fund.


Difference between NFO and mutual fund?

NFO is the first stage in the life of a mutual fund. A mutual fund becomes an active fund only after the New Fund Offering (NFO) is complete. An NFO is an option where people invest in the fund house for the first time. Once the fund house gets established, then there is no NFO, any investor can contact the fund house and buy the fund.


What are the main advantages of using the Washington Mutual Fund?

A Washington Mutual Fund sports advantages such as low fees, low risk, and steady growth. Though it is important to note that Mutual Funds to do not provide the investor with much flexibility.


Is there any general Mutual Fund Calculator available online?

Yes, there is a Mutual Fund Calculator available from the Securities and Exchange Commision. It is available at this url: http://www.sec.gov/investor/tools/mfcc/get-started.htm.


Describe a mutual fund?

A mutual fund is an investment instrument for the common man does not have the time or expertise to invest directly in the stock market. an experienced investor pools in money from such investors and invests in the stock market on their behalf. This person is called the fund manager and the organization that employs this person is the fund house. The whole system is called a mutual fund.