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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

How would the risk of investing in a single stock compare with the risk of investing in a mutual fund?

If you are a serious investor you shouldn’t diversify. If you arent a stock riots investor you should diversify. A low cost index fund far outperforms most hedge funds and mutual funds over the long term. But volatility does not measure risk at all. Risk is measured by the actual risk of the business such as competitor.

What is the minimum initial investment for a mutual fund?

It depends from fund to fund. However, in India the most commonly used numbers are:

Rs. 5000/- for first time investment & Rs. 1000/- for subsequent purchaces

Rs. 500/- per month for SIP's

Note: There are funds that expect a minimum Rs. 1000/- for SIP and even Rs. 25,000/- for first time investment

What are the best Balanced Mutual Funds to Invest in India now?

Balanced Funds

These are Mutual Funds that have a healthy exposure to Fixed Income Instruments, apart from the equity exposure. They invest around 60% in Equities and the rest is invested in Debt instruments. This gives them a chance to preserve a portion of the capital, while trying to achieve growth through equity exposure. The best 3 Balanced Funds as of now are:

1. HDFC Prudence Fund

2. ICICI Prudential Balanced Fund

3. DSP BlackRock Balanced Fund

What is the minimum number of months' worth of living expenses that should be in an emergency fund?

Most money managers will tell you to have at least six months worth of living expenses in savings.

What is the annual income of mukesh ambani?

his annual income is 38.89crore but he takes only 15 crore.

What is front ended load mutual fund?

A front ended load mutual fund that charges a sales of charge that must be paid when a person buys a investment.This reduces the amount of shares that can be purchased,but it is better for long term investors.A fund end load mutual fund will also charges a smaller 12b-1 fee is also know as distribution fee.When considering mutual fund there are lot of AMC that offer good schemes for both long term as well as short term investors. Check out Reliance mutual fund which is fast emerging as one of the best mutual fund companies in the country.

What is the formula for shareholders fund?

Stockholders

' equity = Total assets -

Total liabilities


Or, = Share capital + Reserves


(Note that: Reserves include share premium, retained profits, general reserve, etc.)


Example 1:


UOL Company has the following information:


Buildings $500,000


Motor vehicles $200,000


Stock $20,000


Debtors $35,000


Cash $5,000


Creditors $45,000


Bank loan $85,000



Then,


Total assets = 500,000 + 200,000 + 20,000 + 35,000 + 5,000 = $760,000


Total liabilities

= 45,000 + 85,000 = $130,000


Shareholder funds = 760,000 - 130,000 = $630,000

How did tucker raises the money to fund his idea?

Preston Tucker raised money to fund his automotive venture by utilizing a combination of personal savings, investments from family and friends, and selling shares in his company. He also attracted attention from investors through public demonstrations of his innovative car design, which helped generate interest and financial backing. Additionally, he faced challenges in securing traditional financing, leading him to employ unconventional fundraising methods, including pre-sales of the car to potential customers.

Where can one compare mutual funds?

"There are a lot of places that can compare your mutual funds online, some of which being Scotttrade, Smartmoney, Fidelity and Merrill Edge. They all have tools available for you to use."

Is Washington Mutual the same company as Washington Mutual?

"Washinton Mutual is not the same company as Washington Mutual. Washington Mutual is a banking company and Washinton Mutual is retail selling brand, dire stuff to know."

How much research should be done before purchasing mutual funds?

When purchasing mutual funds. I would suggest you do some type of research. Having a personal accountance is a great way to start this project; he or she will have the answers you may be looking for.

What is the purpose of the 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

What is the best way to compare mutual funds?

There are several ways to compare mutual funds. The first is to contact a financial planner/professional and have them do it for you. There are also tools you can download and use (from Trow Price for example) in order to do the comparison yourself.

Are there many websites that are capable of comparing mutual funds?

"Yes, there are many resources you can use to compare mutual funds. The wide variety of sites are very useful in comparing mutual funds. There is also software that is downloadable."

What is mutual fund research?

Mutual fund research involves the study of all available information. It should begin with a review of the mutual fund's prospectus. This document will offer the investor a wealth of information about the management of the fund, how the fund invests, the cost of ownership (fees and expenses) as well as information about the the fund's holdings. The potential investor may also use the web to gain opinions, how the markets are impacting the fund and recent news about the fund. All of this information helps prospective investors make the correct choice for their risk profile and investment goals.

What are the most highly rated mutual funds available through Pimco?

According to "the street ratings", Allianz RCM Wellness Fd A was the highest rated mutual fund available through Pimca as of 7/31/11.

Are mutual funds covered by federal market insurance?

No. Stock Market Investments (Mutual Funds as well) are not covered by federal insurance. It covers only bank deposits