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What is the difference between a mutual fund and a bond mutual fund?
A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.
Are the funds in your irrevocable trust funds safe from the financial crisis?
It depends on where the funds are invested. Banks have FDIC insurance up to certain levels. Otherwise, stocks, mutual funds and so on depend on the market value. You will always have the number of shares you started with. Wait it out and the value will come back--selling at a low price may be shortsighted. However, it is always your choice.
What does the 'expense ratio' of an investment fund mean?
Expense Ratios, expressed as a percentage, represents the amount of money a fund spends on management, administrative costs, operating costs, 12b-1 fees and any other costs tied to the assets in the fund. It does not include costs for trades made in the fund. These costs are passed on to the shareholders in the fund and are calculated against the total assets under management. Investors use this percentage to determine their return on the investment by subtracting the cost from the performance of the securities in the portfolio. It is however only one of the costs associated with fund ownership. All fees should be calculated against the return of the fund to get a clear picture of how well the fund performed. Index funds and most exchange traded funds (ETFs) have low expense ratios due to the passive management of the portfolio. These types of funds use a published benchmark (index) and invest based on how the index is constructed. Trading is infrequent and the management's activities are limited, which keep all costs low. These funds are expected to come as close to matching the benchmark without exceeding its performance after the fees are subtracted. Many of these types of funds have expense ratios of less than 0.20%. Actively managed mutual funds have higher expense ratios by comparison due to the active management of the underlying securities in the portfolio. According to the Investment Company Institute (ICI), the average expense ratio for actively managed mutual funds is 0.90%. To perform better than a comparable benchmark, this type of fund must beat the benchmark after these costs are subtracted.
What is meant by return in mutual fund?
In mutual funds, "return" refers to the profit or loss generated from the investment over a specific period, expressed as a percentage of the initial investment. Returns can come from various sources, including capital gains from the appreciation of the fund's assets and income distributions from dividends or interest. Investors typically assess returns to gauge the fund's performance and compare it to benchmarks or other investment options. It's important to consider both historical returns and the associated risks when evaluating mutual funds.
What mutual funds have high Sharpe and Sortino ratios?
Vanguard Wellesley Fund (VWINX) has a 3 year Sharpe ratio of over 2 and a Sortino ratio over 6. That's the best I've come across.
What is a mutual fund what are the advantages of owning mutual funds?
Mutual funds are a professionally managed investment that pools money from many investors to buy stocks, bonds and other securities. The advantages of this sort of investment are numerous. Mutual funds allow investors to diversify over numerous securities, chose investments that match their goals, and do so while enlisting professional management. Mutual funds come in two basic types: index funds and actively managed funds.
Is the government bond the same as the fixed income securities?
Fixed Income Securities are investments in which the income or interest earning is fixed and can be predicted accurately. Bonds & Debt Mutual funds would come under Fixed Income Securities. Government Bonds are also one among the many Fixed Income Securities available for us to invest.
When did mutual funds first come about?
1924
What is the difference between a mutual fund and a bond mutual fund?
A Bond mutual fund is a type of mutual fund that invests in bonds and other government securities that are safe and have a fixed rate of return. Whereas the term mutual fund per say refers to equity mutual funds in most cases which invest in the stock market.Bond mf's are safer whereas equity funds come with a certain risk component but at the same time the returns on equity funds are much higher when compared to bond fundsAnswer:Bond funds are investment vehicles that are meant specifically for people who are looking for low risk investment options, but want higher returns than they would get from a fixed deposit. The NAVs of most bond funds don't fluctuate as much as equity funds. Bond mutual funds invest in bonds issued by the government or corporate houses. Mutual funds investment involves a group of investors pooling in their money to invest in securities, which could be stocks or bonds. Mutual funds are considered a low risk-high return investment vehicle. If you're interested in mutual fund investment, you may want to get some professional advice.
Information on mutual funds?
Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of securities such as stocks, bonds, or other assets. They are managed by professional fund managers who make investment decisions on behalf of the investors. Mutual funds offer diversification, professional management, and liquidity to investors, but they also come with fees and expenses that can impact returns. Investors can choose from a wide range of mutual funds based on their investment goals, risk tolerance, and time horizon.
What are some of the best money market funds?
Research has shown that there are a few money market funds that are said to be good investments although it is expected that 2013 will provide low interest. Some that one could consider are Treasury Funds, Diversified Taxable Funds and Tax Free Funds.
Where do I find aggressive growth funds?
Pearl Aggressive Growth Fund, helps you invests in shares of registered companies. Pearl Aggressive Growth Fund trys to come up with objective by investing 95% or more of net assets in mutual funds.
Are the funds in your irrevocable trust funds safe from the financial crisis?
It depends on where the funds are invested. Banks have FDIC insurance up to certain levels. Otherwise, stocks, mutual funds and so on depend on the market value. You will always have the number of shares you started with. Wait it out and the value will come back--selling at a low price may be shortsighted. However, it is always your choice.
What does the 'expense ratio' of an investment fund mean?
Expense Ratios, expressed as a percentage, represents the amount of money a fund spends on management, administrative costs, operating costs, 12b-1 fees and any other costs tied to the assets in the fund. It does not include costs for trades made in the fund. These costs are passed on to the shareholders in the fund and are calculated against the total assets under management. Investors use this percentage to determine their return on the investment by subtracting the cost from the performance of the securities in the portfolio. It is however only one of the costs associated with fund ownership. All fees should be calculated against the return of the fund to get a clear picture of how well the fund performed. Index funds and most exchange traded funds (ETFs) have low expense ratios due to the passive management of the portfolio. These types of funds use a published benchmark (index) and invest based on how the index is constructed. Trading is infrequent and the management's activities are limited, which keep all costs low. These funds are expected to come as close to matching the benchmark without exceeding its performance after the fees are subtracted. Many of these types of funds have expense ratios of less than 0.20%. Actively managed mutual funds have higher expense ratios by comparison due to the active management of the underlying securities in the portfolio. According to the Investment Company Institute (ICI), the average expense ratio for actively managed mutual funds is 0.90%. To perform better than a comparable benchmark, this type of fund must beat the benchmark after these costs are subtracted.
What is meant by return in mutual fund?
In mutual funds, "return" refers to the profit or loss generated from the investment over a specific period, expressed as a percentage of the initial investment. Returns can come from various sources, including capital gains from the appreciation of the fund's assets and income distributions from dividends or interest. Investors typically assess returns to gauge the fund's performance and compare it to benchmarks or other investment options. It's important to consider both historical returns and the associated risks when evaluating mutual funds.
Why did sebi come up with a new ruling on mf nfos?
Have you ever tried to view details on the total number of mutual funds available for purchase in India? If you haven't, I strongly suggest you visit www.amfiindia.com and check out the sheer number of mutual fund houses and the thousands of mutual funds available for us. There are 50+ Mutual Fund houses and even if consider each fund house has one fund for each fund category, we are looking at atleast a 1000 funds. SEBI feels that, fund houses just offer NFOs to attract investments and then lose interest in the fund if it doesn't attract sufficient funds (As per their considerations). They devote very little interest on such funds and the investor interest is forgotten. Such funds generate dismal returns and investors lose their hard earned money. So, SEBI feels that, if a fund house fails to honor its commitment to investors in one fund, they may not be able to generate investments for any of their subsequent new funds and hence, they will take their jobs more seriously and always take investor interest as the primary factor when it comes to managing the funds.
What is a sector mutual fund?
A sector mutual fund is one that invests in stocks of only one or a small number of sectors. They do not buy stocks of companies that do not come under the sector they are designed to invest in. For Ex: ICICI Prudential Infrastructure fund - invests only in infrastructure stocks. They will stay away from stocks that come under the chemicals, automobiles, banks sectors etc.
