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The stock answer is, buying individual equities is more risky than buying a mutual fund because a mutual fund contains many equities, hence is "less sensitive to the vagaries of the market." IOW, if there are three hundred different companies represented in one fund, the odds of them all going down is really low.
The real answer is, it depends on whether you or the manager of the fund in question is better at picking stocks, and how diversified your portfolio is.
What else can I help you with?
Mutual Fund?
form_title=Mutual Fund form_header=Meet your financial goals by investing your money in a mutual fund. Are you interested in hiring a broker to give you more information about mutual funds?= () Yes () No What type of mutual fund are you looking into investing in?=_ What is your budget for investing?=_
What type of mutual fund is an aggressive growth fund?
Aggressive growth funds are the type of mutual fund aiming for rapid growth. More information can be found in a financial dictionary or on a fund manager's website.
Why investment in mutual fund is risk less?
Investing in a mutual fund is not necessarily less of a risk. What makes a mutual fund less riskier than a single stock is that the risk is spread out amonst many more companies. Let's assume the mutual fund you own owns stock in 100 different companies. If one of those companies go bankrupt, you'll probably only lose on average 1% of your money. If you own stock in a single company and that company goes bankrupt, you lose 100% of your money. But let's assume you have stock in a very safe company like McDonald's and your friend owns a mutual fund which is comprised of 50 new fast-food restaurants. Your stock in McDonald's may actually be less of a risk than in that type of mutual fund. So, it's important to see what types of stocks a mutual fund is comprised of before assessing how safe or risky it is.
What mutual fund averaged more than 20 percent this year?
As of my last knowledge update in October 2023, specific mutual fund performance data for the entire year wasn't available. To find a mutual fund that averaged more than 20 percent return for the current year, you would need to check recent financial news, fund performance reports, or investment platforms that provide updated mutual fund data. Always consider factors such as risk, management fees, and investment strategy when evaluating mutual funds.
Can you explain what mutual fund investing is?
A mutual fund is a share or fund that is held by more than one holder yet managed by professionals. They pool money from many different investors, and unlike most funds are open ended.
What does the acronym sbimf stand for?
the acronym SBIMF stands for State Bank of India Mutual Funds. One can find more information about mutual fund basic, mutual fund guide and mutual fund coach online at SBI Mutual Fund.
Mutual Fund?
form_title=Mutual Fund form_header=Meet your financial goals by investing your money in a mutual fund. Are you interested in hiring a broker to give you more information about mutual funds?= () Yes () No What type of mutual fund are you looking into investing in?=_ What is your budget for investing?=_
How does hedge fund differs from mutual fund?
Hedge funds and mutual funds are both managed portfolio in which securities are picked by a fund manager. However hedge funds are more aggressively managed as compared to the mutual fund. They can take speculative positions in the derivative securities .Hedge funds also differs from mutual fund in their availability, they are available to only specific investors .There are many investment companies that invest in hedge fund and mutual fund of which Reliance mutual fund is one of the good one.
What type of mutual fund is an aggressive growth fund?
Aggressive growth funds are the type of mutual fund aiming for rapid growth. More information can be found in a financial dictionary or on a fund manager's website.
How can you determine the portion of a mutual fund's holdings is large cap?
It depends on the type of mutual fund. Most traditional funds have an exposure of around 50% or more in large caps.
Why investment in mutual fund is risk less?
Investing in a mutual fund is not necessarily less of a risk. What makes a mutual fund less riskier than a single stock is that the risk is spread out amonst many more companies. Let's assume the mutual fund you own owns stock in 100 different companies. If one of those companies go bankrupt, you'll probably only lose on average 1% of your money. If you own stock in a single company and that company goes bankrupt, you lose 100% of your money. But let's assume you have stock in a very safe company like McDonald's and your friend owns a mutual fund which is comprised of 50 new fast-food restaurants. Your stock in McDonald's may actually be less of a risk than in that type of mutual fund. So, it's important to see what types of stocks a mutual fund is comprised of before assessing how safe or risky it is.
What mutual fund averaged more than 20 percent this year?
As of my last knowledge update in October 2023, specific mutual fund performance data for the entire year wasn't available. To find a mutual fund that averaged more than 20 percent return for the current year, you would need to check recent financial news, fund performance reports, or investment platforms that provide updated mutual fund data. Always consider factors such as risk, management fees, and investment strategy when evaluating mutual funds.
Can you explain what mutual fund investing is?
A mutual fund is a share or fund that is held by more than one holder yet managed by professionals. They pool money from many different investors, and unlike most funds are open ended.
Why is investing in a mutual fund less risky than investing in a particular company and stock?
Investing in a mutual fund is generally less risky than investing in a particular company or stock because mutual funds diversify their holdings across a range of assets, which helps to spread risk. This diversification reduces the impact of poor performance from any single investment, as gains in other holdings can offset losses. Additionally, mutual funds are managed by professional portfolio managers who make informed decisions to optimize performance and manage risks. Overall, this collective approach provides a more stable investment option compared to the volatility associated with individual stocks.
Are index funds better than mutual funds?
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.
How do you claim a mutual funds dividend reinvest book shrs?
To claim a mutual fund's dividend reinvestment, you typically need to enroll in the fund's dividend reinvestment plan (DRIP). This allows you to automatically reinvest any dividends you receive into buying more shares of the mutual fund. Contact your fund provider or look for information on their website to enroll in the DRIP.
Mutual fund with more then 20 percent return in 2009?
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