0
A mutual fund is an investment with a well defined, easy to understand investment strategy and goals. People buy mutual funds because they enjoy the certainty of following the pre-declared investment goal in a diversified way.
Another option would be to create your own investment portfolio of stocks and bonds that matches ones investment objective. This is a much harder task than just buying a mutual fund, because it takes a lot of work to select a bunch of securities that would satisfy your goals. The trick is that no single financial instrument you select would normally satisfy your strategy by itself, only together with other ones, your portfolio will be complete.
Therefore, to save time and money on creating an individual portfolio from scratch, one wants to buy a mutual fund if one establishes that the goals of the fund suit an investment strategy of the individual.
A second, very important consideration is taxes. It turns out that buying mutual funds is a good idea when one is to use tax advantages of retirement plans, such as IRA, Roth IRA or 401k, 403b. The reason is that a so-called turnover ratio (or distributed gains) for a mutual fund can be quite high. If you have to pay taxes on these gains, you might end up paying tax on the income you did not receive. It is therefore recommended to use low turnover mutual funds or an entirely different investment vehicle - exchange traded funds (ETF) if investment is made in an ordinary (vs. tax privileged) account.
What else can I help you with?
What are the two best mutual fund companies in America to buy mutual fund for your ROTH IRA?
vanguard
How can I cash out my mutual fund to buy a house?
To cash out your mutual fund to buy a house, you can contact your mutual fund company and request a redemption of your investment. This will allow you to receive the cash value of your mutual fund, which you can then use towards purchasing a house. Keep in mind that there may be tax implications and fees associated with redeeming your mutual fund, so it's important to consider these factors before proceeding.
How many AMC in India?
As of may 2009 there are 38 asset management companies operating in india: 1 AIG Global Investment Group Mutual Fund 2 Baroda Pioneer Mutual Fund 3 Benchmark Mutual Fund 4 Bharti AXA Mutual Fund 5 Birla Sun Life Mutual Fund 6 Canara Robeco Mutual Fund 7 DBS Chola Mutual Fund 8 Deutsche Mutual Fund 9 DSP BlackRock Mutual Fund 10 Edelweiss Mutual Fund 11 Escorts Mutual Fund 12 Fidelity Mutual Fund 13 Fortis Mutual Fund 14 Franklin Templeton Mutual Fund 15 Goldman Sachs Mutual Fund 16 HDFC Mutual Fund 17 HSBC Mutual Fund 18 ICICI Prudential Mutual Fund 19 IDFC Mutual Fund 20 ING Mutual Fund 21 JM Financial Mutual Fund 22 JPMorgan Mutual Fund 23 Kotak Mahindra Mutual Fund 24 LIC Mutual Fund 25 Mirae Asset Mutual Fund 26 Morgan Stanley Mutual Fund 27 PRINCIPAL Mutual Fund 28 Quantum Mutual Fund 29 Reliance Mutual Fund 30 Religare AEGON Mutual Fund 31 Religare Mutual Fund 32 Sahara Mutual Fund 33 SBI Mutual Fund 34 Shinsei Mutual Fund 35 Sundaram BNP Paribas Mutual Fund 36 Tata Mutual Fund 37 Taurus Mutual Fund 38 UTI Mutual Fund
What should an investor examine in a mutual fund?
no
Where can you buy mutual funds?
You can buy it at a no load mutual fund company. An example of this kind of company is Vanguard. One can also seek advice from other people on where to buy mutual funds.
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.
Which mutual fund should I pick?
You need to do your research before choose a mutual fund. Find a fund that offers dividend distributions. A fund that invests heavily in stocks is good for capital growth.
whats the lowest amount u can buy a mutual fund for.?
Mutual funds are not bought per se. You can make contributions to a mutual fund through your employer or bank. There is no minimum contribution many times.
Is a mutual fund a corporation?
A mutual fund is a corporation
What are some equity oriented fund of funds in India?
A Fund of Fund is a Mutual Fund where the fund manager does not buy individual stocks. Instead he buys mutual funds of a particular type. In this case, Equity Oriented Mutual Funds.Example:a. Quantum Equity FOFb. Kotak Equity FOFc. Principal Global Opportunities Fundd. etc
Does a mutual fund have an ISIN?
Yes, a mutual fund typically has an International Securities Identification Number (ISIN). The ISIN is a unique code that helps identify the fund in the financial markets, making it easier for investors to buy, sell, and track the fund. Each share class of the mutual fund may have its own distinct ISIN to differentiate between them.
Where can I buy mutual funds online at?
There are several sites that offer information about mutual funds available. One of the best is www.mint.com/invest/mutual-funds/. It is a free site that tells what a mutual fund is & how to buy or sell them online.
