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Why do you look at the long term track record with a mutual fund?
Wiki User
∙ 10y ago
To try to gauge the skill or ability of the hedge fund manager. Besides looking at the track record one must see if there has been a change in the investment manager. Also check the investment strategy the manager pursues as it might possess more serial correlation or not.
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∙ 10y ago
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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 the meaning of close end fund of Mutual fund?
A close ended mutual fund is one which does not accept fresh deposits/investments into the mutual fund once it is kicked off/started. Only the set of investors who invested their money in the fund during the IPO period remain investors. The fund manager would have promised his investors a certain kind of performance through the prospectus and would have a specific/fixed timeframe within which he plans to do so. Since he does not have to worry about fresh amount deposits or frequent redemption requests, he would be able to think for the long term and maximise the returns of the mutual fund.
What is a Contra Mutual Fund?
A Contra Fund is another type of Equity Mutual fund that has a contrarian view to investment which is supposed to be the opposite of the view that regular MF's take. Theoretically speaking, a contra fund is one that invests in stocks that are out of favour with investors and are being sold/avoided by them but have the potential to grow in the long term. A regular MF manager will avoid such stocks while the fund manager of a contra fund will go in search of such stocks
How are you charged when you take out money in a mutual fund?
There are following charges when you take out money from a mutual fund: exit load: it depends upon scheme features which describes how much exit load will be charged and when(time horizon of scheme holding period) nowdays after 1 years no exit load is charged. But do confirm by reading mutual fund account statement deeply. Securities transaction tax: it is charged whenever you withdraw money from mutual fund it is approx. 0.025% of fund value. Other charges is short term tax and long term tax. Short term tax on gain is 15% as per fy 2011-12 and long term capital gain is nil. Long term will be considered when we hold our investment for more than one year.
How would the risk of investing in a single stock compare with the risk of investing in a mutual fund?
If you are a serious investor you shouldn’t diversify. If you arent a stock riots investor you should diversify. A low cost index fund far outperforms most hedge funds and mutual funds over the long term. But volatility does not measure risk at all. Risk is measured by the actual risk of the business such as competitor.
Why do you want to look at a long-term track record with a mutual fund?
Because it is good look long term track with a mutual fund.
which mutual fund company would you recommend in canada?
TD Mutual Fund Company has high recommendations on their mutual fund activity. It is one of the largest investment companies in Canada. TD Mutual Fund has a long history of helping investors with a variety of investment portfolios.
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.
Can open end mutual funds short stocks?
The vast majority of mutual funds do not short stocks. Whether it is an open end or closed end fund is irrelevant. If a fund can short stocks, this strategy will be described as a "long-short" fund or something similar.
Which type of mutual fund is more likely to be chosen by someone with long-term goals and a higher risk tolerance?
Equity Diversified Mutual Funds
What is the meaning of close end fund of Mutual fund?
A close ended mutual fund is one which does not accept fresh deposits/investments into the mutual fund once it is kicked off/started. Only the set of investors who invested their money in the fund during the IPO period remain investors. The fund manager would have promised his investors a certain kind of performance through the prospectus and would have a specific/fixed timeframe within which he plans to do so. Since he does not have to worry about fresh amount deposits or frequent redemption requests, he would be able to think for the long term and maximise the returns of the mutual fund.
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 better stocks Mutual fund or bonds for retireme?
For a standard retirement plan whether 15 years is short or long term depends on the age at which you could being to invest.For example if you start a retirement fund at the age of 20, 15 years would be a short term.It is not possible to say which is the better option for a retirement plan but mutual fund seems to be the most beneficial in long term.There are many portals that gives you the information like Reliance mutual fund, ICICI,HDFC.
Investor Questionnaire: How Do You Choose a Mutual Fund?
Select the right mutual fund for your investment goals by answering a few questions first. Mutual funds help investors pool resources to invest in a portfolio of stocks, bonds, or a combination of asset classes. The three major asset classes include stocks (equity), bonds (debt) and money market instruments, such as short-term Treasury bills, certificates of deposit and commercial paper.1. What's your risk tolerance?If taking any risk concerns you, a U.S. Treasury bond fund or high quality money market mutual fund may be right for you. If you're comfortable assuming more risk to achieve a higher return, evaluate stock mutual funds or balanced stock and bond mutual funds.2. What are your investment goals?Your financial advisor often tells you to invest for the long term. She tells you to consider time in the market, not market timing. Long-term investors purchase quality investments. Bond investors purchase investment quality bonds. Stock investors purchase blue-chip stocks, such as the companies that make up the Dow Jones Industrial Average (INDU). Quality investments have an established track record of performance. The issuer or company's credit rating is usually high, and established by a Nationally Recognized Statistical Rating Organization (NRSRO) such as Standard & Poor's or Moody's.3. What is your investment time horizon?Long-term investors evaluate investments over a three to five year horizon. If you're a short-term trader, mutual funds probably aren't the best investment vehicle for you. A mutual fund spreads risk over many securities. For that reason, a mutual fund of high quality bonds or blue-chip stocks tends to rise or fall more slowly than other investments.4. How do you evaluate mutual fund costs?Even no-load mutual funds pass along costs to investors. The fund's portfolio managers, analysts, administrators and accountants receive compensation to manage the mutual fund. Ask for a prospectus before investing in any mutual fund. Identify the expense ratio of each fund you're considering as an investment. No-load mutual funds have variable expense ratios.
How to Select a Mutual Fund?
Investing in mutual funds is a great way to build a strong financial future, especially during these times when the unexpected suddenly happens; we all need to think of options on how to improve our financial stability to make our future more secure. With the multitude of mutual fund options available, you need to determine which would be the best option for your need and future goals. Here are some tips on how you can make the most out of your investment in mutual funds. Step 1: Before looking at the mutual fund options, take stock of what your goals are, and what you want to achieve with this investment. You also have to take into consideration your risk level in choosing which investment would be the wisest one for you to go into. Step 2: Take a look at the various mutual fund strategies, and compare it with your investment goals. As an example: if you are still young, you may want to go for a mutual fund with an aggressive approach; if you are nearing your retirement age, you might want to look at the mutual funds dealing with a more conservative take. Step 3: Check if the mutual fund you are considering on investing in comes with a load; sometimes these charge extra fees every year, which is not yet included on the percentage they get out of the earnings. Keep in mind that load mutual funds do not encourage mutual fund managers to do an excellent job, and might hinder a good return on your investment. Step 4: When you researching about mutual funds, you might want to go to Morningstar; this gives the various mutual funds a rating of 1 to 5 (5 being the highest rating, 1 the lowest). If you are new to the game and do not have much information on what the best mutual fund options are, you can rely on Morningstar to give objective and knowledgeable ratings. Step 5: Choose a mutual fund with a mutual fund manager that has a proven track record in the industry. Check how long he has been handling the mutual fund, and compare its performance to the time when it has not yet been handled by the manager. Mutual funds are great investments, and choosing the best one for your needs is important if you want to make sure that your investment would get you the goals you want to achieve. Remember that you will be investing your hard-earned money into this venture, so you have to do all you can to ensure that your investment is in very good hands.
Are mutual funds a good long term ivestment?
Yes if:The Fund Manager is a capable individualThe Fund House is a reputed company and aims to maximize investor profits
What is a Contra Mutual Fund?
A Contra Fund is another type of Equity Mutual fund that has a contrarian view to investment which is supposed to be the opposite of the view that regular MF's take. Theoretically speaking, a contra fund is one that invests in stocks that are out of favour with investors and are being sold/avoided by them but have the potential to grow in the long term. A regular MF manager will avoid such stocks while the fund manager of a contra fund will go in search of such stocks
