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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

What is the role of mutual fund?

The role of a mutual fund is to provide avenues of investment for the normal investor who does not have the expertise or the time to have a direct investment in the stock marketbut at the same time wants to gain exposure to the stock market for its high return potential.

What does the term POP mean in investments and securities trading?

POP=Public Offering Price. Search for other info on Public Offerings, IPOs, POP versus Net Asset Value (NAV) to understand the contexts in which this term is used.

What did the US sell to fund the war?

The major revenue of US comes from their weapon business. They are the largest weapon seller in the world.

What does portfolio beta mean?

The beta of a portfolio is the weighted average of individual betas of assets in that portfolio. There is an example of portfolio beta calculation here: http://www.riskyreturn.com/portfolio_beta.html

What is the oldest open end bond mutual fund?

I don't know. But since there are no answers yet, I'm going to mention that Fidelity Investment Grade Bond Fund, FBNDX, has an inception date of 9/30/1971.

What is a hedge fund?

Well there are a couple of different ways you could define it... 1. (a flexible investment company for a small number of large investors (usually the minimum investment is $1 million); can use high-risk techniques (not allowed for mutual funds) such as short-selling and heavy leveraging) 2. an investment fund open to a limited range of investors that is permitted by regulators to undertake a wider range of activities than other investment funds and also pays a performance fee too its investment manager . and more...

Define hedge fund?

Hedge fund is an investment fund for a limited range of investors allowed by regulators to undertake a wider range of investment and trading activities than any other investment funds.

How many mutual funds exist?

There are many

see here for a few investment funds

http://www.investmentintelligence.com.au/cmd.php?Clk=2208474

Can open end mutual funds short stocks?

The vast majority of mutual funds do not short stocks. Whether it is an open end or closed end fund is irrelevant. If a fund can short stocks, this strategy will be described as a "long-short" fund or something similar.

How many mutual funds are there to invest in?

There are numerous types of mutual funds that are available for investment.

The Different Mutual Fund Categories in India are:

1. Equity Diversified Funds

2. Equity Midcap Funds

3. Equity Infrastructure Funds

4. Equity Banking Funds

5. Equity Pharma Funds

6. Equity FMCG Funds

7. Equity Technology Funds (IT)

8. Arbitrage Funds

9. Equity Index Funds

10. Balanced Funds

11. Monthly Income Plans

12. Debt Funds

13. Liquid Funds

14. Income Funds

15. GILT Funds

16. Gold ETFs

17. Fund of Funds - Equity Oriented

18. Fund of Funds - Debt Oriented

How do you change from one mutual fund to another?

If both funds are in the same fund "family", you can do an "Exchange". Else you have to sell the fund you own, wait to get the proceeds, and buy the one you want.

You can either do this directly with the mutual fund company/companies, or via a brokerage account, such as Scottrade, Fidelity, etc. Brokerage accounts can charge additional fees to buy/sell mutual funds, and they typically have categories of funds, like "Fee" and "No Transaction Fee" (NTF). The advantage of using the brokerage account is convenience - to be able to have all of your investments tracked in one place, the ability to sell funds without having to have the money mailed to you, and the ability to buy funds without filling out any "application forms". The advantage of dealing directly with the Mutual Fund companies are the absence of extra fees, and the ability to make automated monthly investments.

Certain funds have trading restrictions and/or fees for "short-term selling", which means that you need to hold funds for a certain period (like 90 days, for example) in order to sell without restrictions. Check your funds prospectus for more information before selling. Mutual Funds also have a minimum investment amount, so check that the amount you have to invest is greater than the minimum before you sell your prior investment.

There is also a class of Mutual Funds called Load funds that charge you a fee when you buy and sometimes when you sell them. These funds are typically sold through a financial planner, where the planner gets all or a portion of the fee. Load funds have been shown to underperform no-load funds because of the fees associated with them.

Definition of mutual fund?

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 doesn't 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 Investment CD's or mutual funds?

It depends on your financial goals, length of time you plan on holding the investment and whether or not you want any risk involved.

CD's are more closely related to savings than they are to investing. CD's are good for short term. They are the safe bet as you obviously can not lose money. On the other hand when you adjust for inflation you are not making any money, you are more along the line of preventing yourself from losing money.

Mutual funds have a risk but as you can guess there is no "investment" that does not and without some risk you don't stand any chance of truly "making" money. These are not recommended as short term so I would not suggest if you do not plan to hold for at least a few years, but if you do by all means, jump in. Diversification is paramount here. Let's say you have 10,000, instead of investing all of it in one fund, it would be smarter to divide it over a few different kinds such as a growth, a value, a small cap, a mid cap, a large cap, and a foreign.

Remember that funds are long term investments and you might not cash them out until something huge such as buying a house or for retirement. In the meantime, you would continue to purchase more funds each year and become more diverse. One other thing, always keep enough to pay a couple months of bills in a savings account for emergencies as you do not want to be penalized for having to cancel an investment before it has had some time to mature.

Will interest rates increase if the demand for loanable funds increases?

yepp. draw a loanable funds graph.

http://www.schooltube.com/video/0fd3f5c29ca74dc5af00/Fiscal%20Policy

List of mutual funds in India?

A. Bank Sponsored

1. Joint Ventures - Predominantly Indian

- Canara Robeco Asset Management Company Limited

- SBI Funds Management Private Limited

2. Joint Ventures - Predominantly Foreign

- Baroda Pioneer Asset Management Company Limited

3. Others

- UTI Asset Management Company Ltd

B. Institutions

- LIC Mutual Fund Asset Management Company Limited

C. Private Sector

1. Indian

- Axis Asset Management Company Ltd.

- Benchmark Asset Management Company Pvt. Ltd.

- DBS Cholamandalam Asset Management Ltd.

- Deutsche Asset Management (India) Pvt. Ltd.

- Edelweiss Asset Management Limited

- Escorts Asset Management Limited

- IDFC Asset Management Company Private Limited

- JM Financial Asset Management Private Limited

- Kotak Mahindra Asset Management Company Limited(KMAMCL)

- Quantum Asset Management Co. Private Ltd.

- Reliance Capital Asset Management Ltd.

- Religare Asset Management Company Ltd.

- Sahara Asset Management Company Private Limited

- Tata Asset Management Limited

- Taurus Asset Management Company Limited

2. Foreign

- AIG Global Asset Management Company (India) Pvt. Ltd.

- FIL Fund Management Private Limited

- Fortis Investment Management (India) Pvt. Ltd.

- Franklin Templeton Asset Management (India) Private Limited

- Goldman Sachs Asset Management (India) Private Limited

- Mirae Asset Global Investments (India) Pvt. Ltd.

3. Joint Ventures - Predominantly Indian

- Birla Sun Life Asset Management Company Limited

- DSP BlackRock Investment Managers Private Limited

- HDFC Asset Management Company Limited

- ICICI Prudential Asset Mgmt.Company Limited

- Religare AEGON Asset Management Company Pvt. Ltd.

- Sundaram BNP Paribas Asset Management Company Limited

4. Joint Ventures - Predominantly Foreign

- Bharti AXA Investment Managers Private Limited

- HSBC Asset Management (India) Private Ltd.

- ING Investment Management (India) Pvt. Ltd.

- JPMorgan Asset Management India Pvt. Ltd.

- Morgan Stanley Investment Management Pvt.Ltd.

- Principal Pnb Asset Management Co. Pvt. Ltd.

- Shinsei Asset Management (India) Pvt. Ltd.

Pasted from <http://www.amfiindia.com/amfimembers.aspx>

What is the difference between mutual funds and index funds?

Index funds are a type of mutual fund that invests in the stocks of a specific market index, attempting to maintain a value per unit that tracks that index.

What does equity fund mean?

A stock fund or equity fund is a fund that invests in Equities more commonly known as stocks. Such funds are typically held either in stock or cash, as opposed to Bonds, notes, or other securities. This may be a mutual fund or exchange-traded fund. The objective of an equity fund is long-term growth through capital appreciation, although dividends and interest are also sources of revenue. Specific equity funds may focus on a certain sector of the market or may be geared toward a certain level of risk.

Is it better to fund a SEP-IRA or an individual 401k?

Although it depends on your circumstances, it is often better to fund an individual 401k for the following reasons: 1. The contribution limits are higher in a 401(k) 2. You can borrow in a 401k but not a SEP 3. You can have a Roth 401(k) but you cannot make Roth contributions to a SEP 4. You can buy life insurance or invest in a S corporationi n a 401(k) Fees may be higher in an individual 401k, depending on the custodian and once you have $250,000 in your individual 401k, you must file Form 5500 with the IRS annually. Most custodians will help you complete the form.

What does FA stand for in Washington Mutual Bank FA?

FA likely stands for Finance Association, as in the case Olmos v. Washington Mutual Financial Association et al. "FA" is also listed as an abbreviation for Finance Association on abbreviation.com. It's an abbreviation for a type of firm. FA likely stands for Finance Association, as in the case Olmos v. Washington Mutual Financial Association et al. "FA" is also listed as an abbreviation for Finance Association on abbreviation.com. It's an abbreviation for a type of firm.

What are the objectives and functions of sebi critically evaluate performance of sebi?

Objectives of SEBI:

As an important entity in the market it works with following objectives:

1. It tries to develop the securities market.

2. Promotes Investors Interest.

3. Makes rules and regulations for the securities market.