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Index funds have the potential to be more profitable than mutual funds. Unlike mutual funds, the contents of an index fund are more easily known. The individual stocks that make up an index fund are easier to keep track of. It is easier to track the fund gains and losses. Hence the index.

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What assets did mutual funds own during the 1990?

In 1990 mutual funds held more than $1 trillion in assets


What is the difference between stocks and mutual funds?

The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.


Construction of portfolio for collective investment?

A Collective Investment is more, really, a "vehicle" than a portfolio -- so in short you could construct a portfolio in a myriad of ways -- Think of it this way, you may be familiar with mutual funds. Mutual funds invest in all kinds of things with all sorts of different portfolio construction strategies and methods. There are money market mutual funds and stock funds and other conservative to aggressive funds. A mutual fund is one way of setting up, legally, the form of the investment portfolio, not the strategy of the portfolio. This is also the case with Collective Investment (Funds), which are legally organized in a different manner than mutual funds or partnerships. hope that helps


Are bonds safer than stocks or mutual funds?

Yes they are. Bonds are debt obligations and hence the person who owes the debt is supposed to pay the money back and our money is much safer than what it is in a stock or mutual fund. Since stocks and mutual funds are related to the stock market they have an inherent risk wherein we can lose money if the market collapses.


What are some important differences between mutual funds exchanged trade funds and the hedge funds?

Mutual funds are more heavily regulated than hedge funds. They are more limited in which asset classes they can invest in, whether they can leverage or short sell. Hedge funds have a more liberal regulation. Exchange traded funds, usually refers to funds that trade over the exchange and many times reflect a basket of commodities, or stocks in a given industry.

Related Questions

What assets did mutual funds have in 1945?

By 1945 mutual funds held more than $1 billion


What's the difference between a vanguard fund and any other fund?

only the name of the fund family Vanguard is known as a leader in low fee index funds, while most other mutual fund families focus on actively managed funds. Since most mutual funds that attempt to beat the market through active investing fail to do so, many people prefer funds that simply track the market through an index (i.e. S&P 500 index). Since these funds are passively managed rather than actively managed, they charge lower fees. As the largest index fund manager, Vanguard is able to charge lower fees on index funds vs competing funds.


Commodity index funds are what?

Commodity index funds are funds whose assets are invested in financial instruments linked to a certain commodity index. If it's a well-balanced commodity index fund it will develop roughly the same as the index. It is generally safer to invest in index funds than specialized funds or stocks.


Is reliance mutual fund or hdfc mutual fund better for investors?

I think, Reliance is new in Mutual Fund sector, so it would be batter to go for HDFC Mutual Funds. Market is down and definitely will go up, i think tha NAV of HDFC mutual funds would be batter than Reliance. Thank you


What assets did mutual funds own during the 1990?

In 1990 mutual funds held more than $1 trillion in assets


What were mutual funds' assets in 1992?

All mutual funds combined contained more than $1.6 trillion in assets in 1992


How much did U.S. open-end mutual funds control in 1993?

U.S. open-end mutual funds controlled more than $1.7 trillion in assets by 1993


What is the difference between stocks and mutual funds?

The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.


What is difference between stock and mutual funds?

The major difference between stocks and mutual funds is that stocks are an investment in a single, individual company, while mutual funds are made up of many stocks and are typically managed by a broker. Mutual funds are generally considered safer investments than stocks, as they reduce the risk of lost, but also reduce the chance of gain.


Are mutual funds protected when filing bankruptcy?

They are like any other asset. In fact better than most in the eyes of the crditors as they are easily convertible to cash.


Which are better market cap weighted index funds or equal weight index funds?

Market weight index funds weight the individual company's within the index by market capitalization (shares outstanding multiplied by share price). Equal weight index funds give equal weight in the fund to each company, regardless of its share price. When measuring the performance of each of these types of index funds there is no clear winner. Researchers Dash and Loggie found each type of fund outperformed during different market conditions. The S & P 500 equal weight index fund underperformed the market capitalization weighted fund during strong markets but seemed to perform better than the market cap weighted fund during weak markets.


What are Canadian Mutual Funds and how is their performance?

Canadian Mutual Funds is known to offer more stability than individual stocks. This fact alone is a good indicator as to where you should invest your money.