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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
Bonds are one of the most preferred investment instruments for the risk averse investor who wants a decent return on investment (ROI) and capital preservation at the same time. Bonds are debt obligations which pay out a fixed interest on the invested sum and pay back the whole invested principal at maturity. Unfortunately, Bonds are not so straight forward as they might sound. There are many risks involved in investing in Bonds. These risks can cause losses to the investors bond portfolio and defeat the whole purpose of capital preservation.
Some of the risks involved in investing in Bonds are:
1. Interest Rate Risk
2. Re-investment Risk
3. Call Risk
4. Default Risk &
5. Inflation Risk
How do you cash out on a hedge fund?
In order to cash out of a hedge fund you would require to give notice to the investment manager, sometimes 90 days in advance, sometimes longer. When there is a window to cash out the investment manager give you the money through either a check or a wire transfer and the partner of the hedge fund receives the resources.
What happened to Fletcher Capital Fund?
This was a mutual fund in the late 1960's. The name has changed several times since.
Start 1967 Fletcher Capital Fund, Inc
1972 changed to Legal List Investments, Inc
early 1979 changed to American General Total Return Fund
Nov. 1979 changed to Fund of America, Inc
Sept. 1990 changed to American Capital Growth & Income
1995 changed to Van Kampen American Capital Growth & Income
1998 changed to Van Kampen Growth & Income
2010 changed to Invesco Van Kampen Growth & Income
What are stocks bonds and mutual funds?
stocks= regular investments hand-selected by the investor
mutual funds= investments are chosen for the investor by other people
bond= a long term investment in which you can only gain money and cannot lose any (bonds usually last 6-10 years
based in the home country, especially referring to a company that is registered in the country in which it conducts most of its business, or to funds or activities that are held or located in the home country
Difference between repurchase agreement and federal fund?
-Repo market is closely related to market for borrowing and lending reserves owned by banks-Federal Funds Market
•Both markets are sources of overnight funds
•Both markets settle payments the same day the transaction is completed
•Main difference is that a repo agreement is a collateralized loan
Can you borrow monies from mutual funds?
No. You can sometimes borrow money from a 401k or other retirement plan, but not from a regular mutual fund account. To get money out of mutual funds, you do a redemption.
Can you withdraw from your mutual funds?
Yes. Each mutual fund company has their own rules or requirements. You may be able to just call up, or you may have to provide a signature guaranteed letter of instruction. Best way to find out is to call the company at the phone number on your statement.
What is best small and mid-cap mutul fund for long term investment?
These are Mutual Funds that invest in companies that fall under the Small & Midcap category. They usually search for small to medium sized companies with good fundamentals and growth potential and invest in them.
Example:
a. DSP Blackrock Small & Midcap Fund
b. HDFC Midcap Opportunities Fund
c. IDFC Premier Equity
d. ICICI Prudential Discovery Fund
e. etc
All these 4 funds have been rated as Top Funds in their category.
Why are mutual funds a safer investment than stocks?
The primary reason would be that your investment dollars in a mutual fund would be spread among many stocks instead of just one. If you buy a stock and it goes down, you just lose that value - but in a mutual fund, presumably, the varied holdings balance each other out so that the value of your investment would be more stable.
What does the EPS tell an investor?
EPS means Earnings per Share. It is the company's earnings for a certain period--usually a quarter or a year--divided by shares outstanding.
It could tell me a lot of things.
Wall Street investors feel that there is a certain range in which a stock's earnings per share should be. If the EPS drops below that range, the company needs to do something to improve it, and there are two basic ways to do that: increase earnings or decrease the number of shares outstanding through a stock buyback or a reverse stock split. Increasing earnings is, of course, much better--decreasing the shares outstanding is a bandaid...one that's soaked in blood and has half the glue missing.
EPS that's too high is bad too. That means either you're not putting enough money back into the company (when I worked for Home Depot, our stock took a serious hit because our EPS was too high; the analysts said our biggest problem was we had very outdated computers and it was slowing us down, and we should buy a lot of new automation to make the employees' jobs easier.) or you don't have enough stock outstanding and should do a stock split or another issue.
an active hostility or opposition, as between unfriendly orconflicting groups: the antagonism between the liberal and theconservative parties.
2.an opposing force, principle, or tendency: Her plan to becomean actress met with the antagonism of her family.
3.Physiology . an opposing action, as by one muscle in relationto another.
4.Biochemistry, Pharmacology . the opposing action ofsubstances, as drugs, that when taken together decreasethe effectiveness of at least one of them ( contrasted withsynergism).
5.Ecology .a.a relationship between two species of organisms inwhich the individuals of each species adversely affectthe other, as in competition.
b.the inhibition of the growth of one type of organism by adifferent type that is competing for the same ecological
How can you fund your liberty reserve account?
I have Liberty Reserve funds in my account, If your'e having a hard time on how to transfer funds to your liberty reserve account...I can do an exchange through PayPal if you want, instead of expensive Bank Wire, just provide for a fee of course, coz exchanging from PayPal to Liberty Reserve account is very unusual thing as we all know. Just message me if your'e interested. YM Id : letusexchange / Email: letusexchange@yahoo.com
What are fund based and non fund based advances?
Fund Based Limit is a limit in which the Co. is getting money actually(Cash). eg:
Cash Credit
Term Loan
Non Fund Base limit bank make payment on behalf of company. eg:
Bank Guarantee
Packing Credit
Letter of Credit
What type of investment allows you to be an owner in the company?
a Capital Traders Group or Proprietary Trading Firm allows you to register as a class B member in the investment firm.
What is a Class T mutual fund?
T-class funds are tax efficient versions of some of fund company's existing funds. These pay a set monthly amount based on the manager or fund company's realistic expectation of the fund's future performance. Typically, a portion of this distribution is treated as a return of capital, which is not immediately taxable.
Conversely, the return-of-capital amounts are deducted from the cost base of the fund. This will increase the capital gain when the fund is eventually sold. The other negative is that in periods of poor performance, the fund value may not grow enough to offset the amounts distributed. This would result either in a drop in the fund's net asset value per share or a distribution cut.
What are the sources of funds of a bank?
The sources of funds for banks are as follows:
- Take money from the capital investment on the bank
- Take money from the money deposited into their accounts by customers
- Borrow money from other banks
- Borrow money from the central bank of the country
How secondary markets benefit funds issuers?
Secondary market benefit fund issuers by provide liquidity to investors after their initial purchase of the security. This liquidity encourages them to purchase the security at the initial offer. The current market price also reflects current prospects for the firm and the competitiveness of the issue relative to similar securities. Corporate treasurers follow their stock's price closely because the stock price reflects how well their firm and the market is performing. The current security price also provides information about the cost of obtaining any additional 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.
