Mutual funds are a way of investing that gives a person an option of earning more money than a bank and less risk than the Stock Market. Usually, these funds are managed by stock brokers or other forms of licensed financiers. People can deposit money on the account and write checks on it, just as they can with a normal bank account. Although mutual funds are generally considered safe investments, they are not entirely without risk.
The risk happens in part, because of how mutual funds work. Instead of a person diversifying his portfolio on his own, he contributes the money to the account. The overall funds of the individual investors are pulled together to enable the mutual fund manager to make investments. A person in a mutual fund owns shares in the company. If the investments do well, the amount in the account grows. If the investments do poorly, an investor can lose the money he has in the account.
Investments in a mutual fund are handled by the fund's manager. In order to ensure the money performs as well as possible for the customers he manages, the manager gets paid based on the performance. The better his mutual fund does the more money he makes.
Good managers make sure to keep the funds diversified and do not put all of the money in the fund into one basket. They usually have no other job, although they may occasionally decide to invest the money they make back into the mutual funds that they manage.
Mutual funds are one way a person can invest money, but as it involves a person involving in the stock market, it will usually be only one investment made. Some people reduce their risk by spreading out their money over multiple funds.
A private investor can easily fund such funds, also called money market accounts. He may have to put a certain amount of cash into the account before he can open it. The rules of the mutual fund may necessitate that a person have an account for a certain amount of time before he can make any withdrawals from it.
No load mutual funds are mutual funds that are sold directly by the investment company instead of by an investment broker. They work exactly the same as regular mutual funds.
Investing in mutual funds can be very difficult thing to do since many people do not understand how they work. You can simply walk into any bank and ask a banker in order to help you invest in various mutual funds.
Mutual Funds work to invest in a type such as stock or bonds or sector with much less risk than investing in individual securities. Sources: http://www.amfi.com http://www.morningstar.com/
Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...
Mutual funds pools investors' money to make multiple types of investments, known as the portfolio. The portfolio may include stocks, bonds, money market funds, etc.
Socially responsible mutual funds are meant to not have investments in controversial areas. Examples include arms manufactures, and those that pollute the environment.
There are many good mutual funds available. According to CNN, some of the best mutual funds available include the American Funds American Mutual A and Sound Shore.
Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.
By 1990, there were 3,105 different mutual funds
Pimco funds are mutual funds. They are a type of mutual fund that gains interest over time. Pimco is a international financial institution from whom you would get these mutual funds.
The two primary types of mutual funds are "no-load" and "load" funds
The Securities and Exchanges Board of India SEBI and The Association of Mutual Funds in India (AMFI) control the Mutual Funds in India