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.
How do mutual funds give stability to share prices?
These funds are extremely hedged in different sectors, and in many cases different countries.
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 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.
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.
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 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.
What is the difference between an equity fund and an equalization fund?
An equity fund primarily invests in stocks and shares of publicly traded companies, aiming for capital appreciation and income through dividends. In contrast, an equalization fund is designed to balance the investment returns among different classes of investors in a pooled investment vehicle, often by adjusting the purchase prices of shares based on the timing of their investments. Essentially, while equity funds focus on stock market investments, equalization funds aim to ensure fairness in profit distribution among investors.
What does short selling mean with regards to the stock market with respect to mutual fund?
Short selling is little confusing.Basically it represents a sale of stocks you don't actually own,you borrow from someone else with the understanding you will return them later,and then you sell them.Short selling is essentially a bet that that the stock is overvalues where you can get the information regarding this from the website Reliance mutual fund,ICICI.
No. There would be penalties. See link.
No. There would be penalties. See link.
No. There would be penalties. See link.
No. There would be penalties. See link.
Legal
How does the risk of a money market mutual fund compare with that of a savings account?
The risk of a money market mutual fund is similar to that of a savings account. Both are low-risk, slow-growth savings vehicles. Money market funds are viewed as a cash equivalent, similar to a savings account.
How do you write a letter to withdraw your mutual fund shares?
To,
The Manager
______________
From,
____________
____________
____________
Sir,
Sub: Reg. Redemption of Mutual fund investment with folio number _________________
I would like to redeem my mutual fund investment with the fund _________________________________ with folio number _________________ as on today ________________
Kindly process the redemption request and credit the money into my bank account whose details are below:
Bank Name: ________________
Acc Num: _________________
Branch: _________________
Thank you,
__________________