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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.

1,628 Questions

Can you get fixed monthly income by investing in mutual fund units?

Yes, there are opportunities to derive a fixed monthly income from a mutual fund investment. These funds are generally built with a variety of securities that can vary from a small exposure to stocks (equity), a small position in cash, and the largest portion of the fund's portfolio holding fixed income or bond investments. In many instances there is a restriction on how much of a monthly payout the investor may receive. It is usually no more that 8 percent of the shareholder's assets in a high interest rate environment to a maximum payout of 5 percent in low interest rate environments.

These funds can go by a variety of names including replacement income funds. They are essentially asset allocation funds that pay the investor in monthly payments, adjusting the allocation of assets in the fund to align with the desired monthly income.

What is the symbol for prudential core plus bond pimco fund?

The symbol you are speaking of is also their logo. Prudential core plus bond pimco fund also does 401ks too.

What is an asset management fee?

The Asset Management Company (AMC) as the Investment Manager of the Mutual Fund charges a fee for portfolio management. The fee charged on an annual basis is calculated as a percentage of net assets under management. Reliance Mutual Fund house charges nominal charges as compared to other fund houses.

What are holdback funds?

Holdback funds are a portion of the total payment in a contract that is withheld by one party until certain conditions are met, such as the completion of work or the resolution of specific issues. This practice is common in construction and real estate transactions, where it serves as a safeguard to ensure that contractors or service providers fulfill their obligations. The holdback amount typically encourages timely project completion and compliance with contractual terms. Once the conditions are satisfied, the funds are released to the appropriate party.

Why do people invest money in stocks bonds and mutual funds?

To get more money. You invest because you are seeking a return.

What are the investors objectives in investing his funds in thevstock market?

It depends on the investor!

Some people invest to get regular income through dividends.

Some people invest to earn money as the value of their stocks improves, so they can sell them later on for a profit.

Some people invest because they want to earn money in a short period (a few years) to pay for things like college or a house or a vacation.

Some people invest because they want to have a lot of money for retirement.

How do mutual funds give stability to share prices?

These funds are extremely hedged in different sectors, and in many cases different countries.

How do mutual funds provide stability to share prices?

Mutual funds provide stability to share prices by pooling resources from multiple investors to purchase a diversified portfolio of stocks, which reduces the volatility associated with individual securities. By spreading investments across various sectors and asset classes, mutual funds can mitigate the impact of market fluctuations. Additionally, the consistent buying and selling activity of mutual funds can help smooth out price changes, reducing sharp movements in stock prices. This collective investment approach fosters a more stable market environment for the underlying assets.

When you approve funds in CEFMS you are doing which of the following?

Accepting responsibility and accountability for this action

Certifying that the application of the funds meets the fiscal requirements for the purpose time and amount statutes

What is advantages and disadvantages of investing in mutual fund?

When you invest in mutual you are buying the units or portion of the mutual fund and thus on investing becomes the shareholder.There are top AMC'S which help you to know regarding this they are Reliance mutual fund, HDFC etc.

Is an index fund a good investment?

An index fund can be a great investment. If you read the works of John Bogle (who founded the Vanguard Group), he argues that an index fund has the best possible potential of maximizing your return with little risk and, more importantly, costing you the lowest amount in fees.

The more you pay in fees, of course, the lower your return.

A good index fund like an S&P 500 index fund or a total market fund performs well over time and won't cost you much.

What is systematic withdrawal plan in mutual fund?

A systematic withdrawal plan is a financial plan that lets a shareholder withdraw money from his exsiting mutual fund portfolio at regular intervals.The money that is withdrawn through a systematic withdrawal plan can be reinvested in other portfolio.There are lot of investment companies in India that offer such systematic plan like Reliance mutual fund,ICICI etc.

Can you switch fund managers if you are not happy with your current fund manager?

You certainly can switch Fund Managers and should, if you are not happy with the way he handles your account. There are two types of fund managers. One that works for a company that has its own funds and one that works for an independent financial group. The first guy is obligated to push his company's funds first. The other has no responsibility to any one company and can determine the best fund opportunity based solely on merit. That's the person you want to work with.

Can you withdraw funds from your vested balance?

Yes, it's the non-vested portion of your balance that you wouldn't be able to withdraw. Usually you must meet years of service requirements for a non-vested portion to become vested.

Why mutual fund investing is advantageous?

The primary advantage of investing in mutual fund is professional management, the investor purchase the fund because they do not have time to manage their portfolio, Mutual fund is relatively inexpensive way for small investors to get full time manager to make the investment

How and where to sell a closed ended mutual fund?

A closed end mutual fund is a mutual fund where the sponsor does not buy or sell additional shares after the original underwriting. The fund shares trade on exchanges like stocks and the price of the closed end fund moves based on demand and supply. Thus, one needs to find a stock broker to which the closed end fund shares can be transferred and then sold.