Mutual Funds

An investment instrument formed when investors pool their funds together. The mutual fund manager invests the sum in stocks, bonds, or other financial assets.

2,913 Questions
Investing and Financial Markets
Index Funds and ETFs
Mutual Funds

What is an ETF investment?

ETFs are exchange traded funds. They allow immediate diversification for smaller investors. Unlike mutual funds they allow diversity with fewer limitations - they, like stocks, can be traded intra-day (mutual funds don't allow this), are often optionable (and can therefore be both traded and hedged using options), and represent groups of underlying instruments with a common "theme" - such as currency, geographic region (Southeast Asia, China), Gold, Oil, Health Services, Financial services, or a particular Index, etc.

An ETF is Index-linked, but is not to be confused with an Index Tracking Stock. An index tracking stock is similar, but tracks a particular index, is fully optional, trades large volumes and has a tight bid/ask spread, and can be used with sell stops and automated orders. Some common index tracking stocks track the S&P 500 (spy), Nasdaq 100 (qqqq), Russell 2000 (iwm), Dow Jones 30 (dia), etc. Some indexes may have more than one tracking stock.

There is an ongoing debate in the world of finance over whether or not a mutual fund manager can outperform an index consistantly (skill in picking or luck in picking?). Furthermore, some argue that mutual fund management fees may offset any additional gains from active management. Mutual funds offer "peace of mind" to those who prefer someone else do all the working and watching, ETFs and Index tracking stocks, because they are not actively managed, may require more oversight from the individual investor.

Many ETFs outperform mutual funds without fees. Many online brokerages have ETF scanners that allow you to look them up by region, industry sector, ranked by return, or by strategy (such as Growth, Income, Speculation, etc).

Note that current ETF Assets (in 2010) total over USD 1 trillion, the number grew from about $30 billion from 1999.

757677
Stock Market
Mutual Funds

What is mutual funds dividend reinvest book shrs?

I don't know the answer, but I was just made aware that we have unclaimed funds from MetLife. The funds are Mutual Funds/Dividend Reinvest Book SHRS. I was wondering what this means also.

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Management and Supervision
Mutual Funds

What are a pension fund manager's duties?

A pension fund manager is charged with three basic duties: developing a financial profile of the fund, developing investment policies, and formalizing an investment program

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Mutual Funds
Inflation

Relationship between inflation rate and mutual fund returns?

Practically they do not have any direct or indirect relation. They are independent of one another.

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Symbols for Stocks Mutual Funds and ETFs
Mutual Funds
US Army

What is status of MEPUS folio no 1129515110144701?

call (022) 6678 6666 and and u can get a ll the information u want reated to uti mfs.

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Insurance
Stock Market
Mutual Funds

Differences between mutual fund and insurance?

A Mutual fund is a common pool of money collected from many people and invested in stocks or any other investment instruments by a fund manager. The profit or loss is shared with the investors

Insurance is an agreement between the insurer and insured where the insurer agrees to bear the risk of some event after accepting a small premium from the insured. For ex: you can get a life insurance policy for Rs. 10 lakhs by paying a nominal premium of around Rs. 15000/- per year. In case of our unexpected demise, our family would get Rs. 10 lakhs from the insurance company.

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Symbols for Stocks Mutual Funds and ETFs
IPOs
Mutual Funds

How do you become a licensed stock broker?

You must be sponsored by a stock exchange member then you must take and pass the Series 7 exam. You must also take and pass the Series 63 & 65, or you can just take the Series 66 (which includes both). Most people now are taking the Series 66 because it affords you the title of Registered Investment Advisor and allows you to recommend "managed accounts".

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Mutual Funds

How accumulated fund is calculated?

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Estates
Probate
Mutual Funds

If a will mentions a trust that was never set up is the will valid?

Wills signed by the deceased and witnessed are always valid. Often the elderly may change their minds, but never change their Wills, so the last Will and Testament is the final word. Whatever is in that Will is the way it will be played out. Marcy ==Clarification== If a Will directs that certain property be placed in a trust and the trust was never created the property would remain in the testators estate. The failure to create the trust may result in that property passing as intestate property. The Will is still valid as to any other bequeasts. The property that was to go to the trust would pass according to the residuary clause in the will if there is one. If there is no provision in the Will for property not specifically mentioned then it would be divided equally among the legal heirs as intestate property. Please note that in reality, many, many wills are so poorly written that a judge must make a decision as to the distribution of the property of the decedent. Therefore, the judge has the "final word" by deciding if the will is valid and then by interpreting it if the will was poorly drafted.

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Mutual Funds

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.

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Mutual Funds

What are Equity Linked Savings Schemes?

An ELSS is a kind of Mutual Fund and is similar to any diversified equity mutual fund in many ways. An ELSS gives a tax benefit and comes with a lock in period of 3 years. Investment avenues of an ELSS are a mix of various asset classes such as equity, debt, gold and real estate.

Some advantages of ELSS are

* The 3 year lock in period prevents withdrawals and thus allows your money to grow over a period of time. Long term investment in equities gives better returns than any other investment instrument.

* It gives tax benefits (Up to 30% for people in the highest tax slab)

* Gives the flexibility to invest small amounts through a Systematic Investment Plan (SIP)

As an ELSS investor, your interests will be safeguarded by two separate market bodies. The Association of Mutual Funds in India (AMFI) and the Securities and Exchange Board of India (SEBI)

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Stock Market
Mutual Funds

What statement defines a mutual funds?

A Mutual Fund is nothing but a common pool of money collected from a lot of people which is used by an experienced fund manager who invests the money in the Share market. Not many of us are experienced in investing directly in the Equity market. Mutual funds are a boon to the investor who doesnt have enough knowledge to invest directly in the market but wants to take a risk and gain higher returns from the market.

656667
Stock Market
Mutual Funds

What is the highest performing mutual fund averaged more than 20 percent for 2011?

Enough an!

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Symbols for Stocks Mutual Funds and ETFs
Stock Market
Mutual Funds

What is the risk level of a mutual fund investment?

Ahh, if you don't know the answer or the risk level for a given fund you really need to speak with your broker! I don't mean to come across as being rude or anything but that is like asking what the lottery numbers for tomorrow will be... to broad a question to give any real answer - there are ten's of thousands of funds out there and they all have different purposes!

Obviously every fund has some degree of risk and some more than others (Small vs Large Cap, US vs Euro vs Asia, Growth vs Income, etc etc etc) Most funds however are safer than investing in an individual stock since your money is diversified across hundreds, even thousands of different holdings.

There are far too many factors to list here and no simple answer - a better question would be what is your risk *Tolerance*? It would be a whole lot easier to recommend some funds based on the intended purpose of the investment!

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Business & Finance
Investing and Financial Markets
Nutrition
Mutual Funds

What does high risk high return investments mean?

Investments that have a very high risk tend to pay out a lot more and those that have a low risk have reliable low pay-outs. For example:

  • A Certificate ofDeposit (CD) or a savings account is considered low risk, low return. If you put your money in one, there will be a low rate of return (interest paid to you), but you will gain money on the investment. It just won't be a lot.
  • Stocks are usually considered high risk high return because you spend a lot of moneywithout knowing the payout, but if everything goes through you will get a high return (payout)
  • Broken down, you might say that new company has stock priced at $1 per share; if you buy 1 share at $1 and the value increases to $25 over time, you would only make $24. If you take the same example, but you buy 1000 shares (spending $999 more) and the stock increases to $25, you would make $25,000. A much bigger risk (because the company could have gone bankrupt and you could have lost it all), but worth it to potentially make $24,775 more.
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Mutual Funds

What is difference between growth fund and dividend fund?

Equity funds usually offer three options for investors to choose from - the Dividend Payout option, the Dividend Re-investment option and the Growth option. A few funds have also started to offer a Bonus option. These options differ only in their method of distribution of returns. When you choose the dividend option, you get to partially cash in on the returns earned by the fund from time to time, through the dividends it declares. When you choose the growth option, the returns earned by the fund are retained and reflect as an appreciation in the fund's Net Asset Value (NAV). Please note that the dividend does not in any way, add to your returns from the fund. The Dividend Re-investment option authorises the fund to plough back the dividends declared into the fund at the prevailing NAV, fetching you more units. In terms of its effect on your returns from the fund, the Dividend Re-investment option is no different from the Growth option. The Dividend Re-investment option is the superior option for investors who want the tax efficiency of the dividend option and are also willing to remain invested in equities through its ups and downs. If they need liquidity, such investors can liquidate a part of their holdings at NAV. To illustrate how these options work, let us suppose you invested Rs.1000 in a fund at an NAV of Rs.10 per unit, fetching you 100 units. Six months later, because of an appreciation in the fund's portfolio, the value of the units you hold has grown to Rs 1,200. In the Dividend option, the fund may declare a dividend of Rs 2 per unit and pay out Rs 200. The value of your residual holdings in the fund would be Rs 1000. In the Growth Option, you would not receive any payout, but the value of your holdings would be Rs 1,200 at the end of six months, as the value of the100 units you hold would have grown from Rs 10 to Rs 12 per unit. In the Dividend Re-investment option, the Rs 200 declared as dividends would be reinvested in the fund at the prevailing ex-dividend NAV, and you would be left with 120 units worth Rs.10 each. Your investment value at Rs 1,200, would be the same as in the Growth option. The Dividend option (whether Reinvestment or Payout) is the more tax- efficient way of receiving your returns from an equity fund. The dividends declared by an equity fund (funds with over 50 per cent equity exposure) are exempt from distribution tax and are also tax-free in the hands of an investor. But any returns that you earn on the fund by way of appreciation in NAV, is subject to capital gains tax. Capital gains are taxed at 10 per cent if you hold the fund for less than a year; but are exempt if you hold for over one year. In the above example, if you opted for Dividend Payout, you would have no tax liability at the end of the six-month period. The same would hold good of the Dividend Re-investment option. However, if you sell your units in the Growth option at the end of the six-month period, you would have to pay short term capital gains tax of 10 per cent on the Rs.200 you earned by way of appreciation on the Growth Option NAV. Tax reasons apart, choosing the Dividend Option may also confer other advantages for conservative investors. Equity funds declare dividends only from the profits booked on the holdings in their portfolio. They have tended to pay out liberal dividends when the stock markets are in a buoyant phase and refrain from payouts when the markets are in a bearish phase. Dividend payouts thus offer you the opportunity to cash in partially on any returns that the fund has made, after a sharp run-up in stock prices. Dividend payouts also help you re-balance your equity holdings when the markets are buoyant, guarding you to an extent against a decline in values. The flip side in opting for the Dividend Option is that they could result in an opportunity loss in a rising market. In the above example, if the NAV of the fund climbed from Rs 12 to Rs 15 per unit after the dividend declaration, investors who opted for Dividend Payout would have suffered an opportunity loss on the Rs 200 that they have pulled out of the fund by way of dividend. Their appreciation would be restricted to the Rs 1,000 they have invested in the fund. In contrast, investors who have opted for the Growth and Dividend Re-investment option would have earned an appreciation on the entire sum of Rs 1,200 that they retained in the fund.

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Investing and Financial Markets
Investment Theory
Mutual Funds
Investment Banking

What is the objective of portfolio management and investment analysis?

to increase the values of portfolio consisting some security.

To give the optimum returns to the investor.

To give maximum return i nless risk.

Answer:

The main reason why people have professionals manage their portfolio is to leverage their expertise in order to generate maximum wealth from their investments. A well-managed portfolio will not only take care of diversification, but also allocate resources per the investor's financial objectives and appetite for risks. Besides, portfolio management makes sure there is constant monitoring of your investments. Many companies have forayed into this area of financial service. One such company is GEPL. It offers investment portfolio management services to help its clients realize their financial goals.

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India
Mutual Funds

What is charged expenditure on consolidated fund of India?

It is the expenditure not subject to vote of legislature

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Stock Market
Mutual Funds

How do you become a mutual fund manager?

Becoming a Mutual funds manager involves reading and studing the securities and mutual fund market. You want to give people the best performing mutual fund if your going to spend their money. Read up on Mutual fund terms and theories and then look into getting certified in your country. Sources: http://www.amfi.com/performance/best-performing-mutual-funds http://www.morningstar.com/homepage/default.aspx

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Business & Finance
Investing and Financial Markets
IPOs
Mutual Funds
Stock Options and Futures

How do capital markets work?

Current Day Capital Markets work under supervision of regulatory bodies eg. in India we have SEBI (Securities Exchange Board of India) in UK - FSA (Financial Services Authority). Capital Markets trade(Buy & Sell) with shares that are floated in the market and listed in a particular stock exchange.

505152
Personal Finance
Mutual Funds
Stocks

How do you locate shares in Allstate Enterprises INC.Stock Fund from 1972?

Not sure what a "stock fund" is. Perhaps you've misplaced some stock certificates? In that case, contact Allstate's transfer agent: http://ir.allstate.com/phoenix.zhtml?c=93125&p=irol-transferShareholder If you are looking for an old ticker symbol/value, maybe try Allstate themselves: Investor Relations
The Allstate Corporation
2775 Sanders Road
Northbrook, IL 60062-6127
(800) 416-8803
invrel@allstate.com If this is regarding some sort of Employee Stock Option program, I would contact Allstate at Investor Relations, above.

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Mutual Funds

What is the ticker symbol for Fidelity Investments?

Fidelity Investments is a privately-held company and as such has no publicly-traded stock.

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Debt Collection
Stock Market
Mutual Funds

Can mutual funds and investments as such be seized by creditors?

Possibly. This is an issue where the consumer's state exemption laws apply. Some states protect all types of investments, some protect specific ones, and some states none at all. Sorry, but w/o knowing the state of residency it is not possible to give a more definitive answer.

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Investing and Financial Markets
Mutual Funds

Who is the manager of mbuyelo investment holdings?

Owner Siwela

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Loans
Mortgages
Mutual Funds
Money Management

What is the meaning of hedge fund and why they are called hedge funds what was their role in us sub prime mortgage crises?

A hedge fund, as the name suggests, is a fund that has "hedges"--or preventative measures--in place so that the fund will (theoretically) do well in a bull or bear market. That might mean that hedge fund managers buy stocks for the long haul, while also shorting stocks or buying options in case stock prices go down, for example. They might also make big bets on certain sectors (such as natural resources or the mortgage market) that can earn huge returns if they're right--or cause the fund to go bust if they're wrong (as well as shaking up Wall Street in general. So much for the "hedges.")

They played a role in the subprime mortgage crisis because they purchased subprime mortgages (repackaged as bonds) to such a degree that banks, mortgage brokers, etc. lost sight of their primarily responsibility (i.e., loaning money only to people who could afford to buy a house) because the banks didn't have to keep the loans on the books: they essentially sold them to hedge funds and other investors. So, if one side--the hedge funds--is willing to buy risky subprime loans (in the hopes of big profits), the other side--the banks, etc.--are going to be far more willing to make those loans (in the hopes of big profits). Then, when the borrowers (the home buyers) have trouble paying their mortgages, the hedge funds are going to be hit...but only if they haven't already sold those loans-repackaged-as-bonds to some other sucker.

In short, the hedge funds helped create the atmosphere of easy credit for people who couldn't afford home loans. Moreover, since hedge funds also have a way to make money when the market goes down (because they short stocks, etc.), they also can profit by hyping doom and gloom. Thus, even though the subprime mortgage market is a relatively small part of the U.S. economy, you'd never guess it from all the press it's getting now.

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