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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 do you calculate aum for a mutual fund?
AUM stands for Assets Under Management. This is the net value of money that is currently being managed by the mutual fund house. It is a product of the no. Of units outstanding in the mutual fund and the net asset value. Let us say the NAV of a mutual fund is Rs. 20/- and there are 50000 units of the mutual fund sold till date, the net Assets Under Management would be Rs. 10 lakhs.
Alternately, the AUM can be considered as the total value of all investments at the end of a trading day that is held by a mutual fund house. It will be the value of all the individual shares held by the company + any cash components held in their accounts.
Are mutual funds regulated by states?
Mutual funds must also comply with regulations of each state in which its shares are held
Do shareholders own mutual funds?
Although mutual funds are usually initiated and often indirectly managed by investment companies, shareholders own the funds
On what basis are fund advisers compensated?
Most fund advisers receive a fee for stock selection and portfolio management activities based on the average value of the assets under management.
What are no-load mutual funds?
No-load mutual funds do not require investors to pay fees or sales commission, and the price of a share in a no-load fund is identical to its net asset value
What are the benefits of index funds?
Index funds, which became popular during the 1980s, derive returns from a broad market portfolio that serves to minimize transactions costs and management fees and to reduce market risks
What are the two primary types of mutual funds?
The two primary types of mutual funds are "no-load" and "load" funds
What assets did mutual funds own during the 1990?
In 1990 mutual funds held more than $1 trillion in assets
The objective of a balanced fund is to conserve the investor's principal, pay a high level of income, and promote long-term growth
What is the function of pension fund money managers?
A fund manager is an individual in financial company that implements the company's investment strategy. In larger financial institution this role can be provide by a bigger team of more than one person.
What is the price of a share in a mutual fund?
The price investors pay for a share of the company is based primarily on the market value of the securities in the portfolio
What is the problem with mutual fund investing?
One disadvantage of mutual fund investing is that mutual funds are not tailored to the specific investment needs or tax status of individual shareholders
What was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
The Reserve Fund was the first money market mutual fund
When was the first money market mutual fund?
The first money market mutual fund (MMMF) was created in 1971 and called the Reserve Fund
When you own a mutual fund what exactly do you own?
Mutual fund is a low risk investment. If you invest in a mutual fund, you owns shares of the mutual fund company who is selling you fund. But you do not actually own any underlying asset of the stocks or securities that mutual fund has invested in even they are using your money to invest.
How you can get a fund release order?
i am asking you how can i get a fund release order and you asking me to answer it whats wrong with you
Mutual funds vary in their level of risk. Mutual funds that hold treasury bonds would be considered low-risk (although they may not keep up with inflation). Mutual funds that track broad-based indices, like the S&P 500 index, are considered moderate risk, as they are entirely invested in equities, but are diversified across many sectors of the economy. Mutual funds that focus on high-growth stocks would be considered high-risk, as they are concentrated in stocks that may have volatile prices and they are typically not diversified.
What is meant by mid cap stock?
A mid cap stock refers to the stocks of a company that is considered mid-size as per its market capitalization.
Market capitalization refers to the total market value of all the company's stocks put together. If it runs to a few hundreds/thousands of crores the company will be called large cap and if it only a few crores it is called a small cap.
All companies that fall between these two are called mid cap companies.
In order to take care of emergency situations without having to dip into the investment fund.
