1. Management Expense Ratio (MER)
The MER is an annual fee that's charged to a mutual fund to pay for such expenses as: * management fees paid to the managers of the fund * adviser sales commissions and ongoing service (trailer) fees * legal and audit fees * custodian and transfer agent fees * fund administration expenses * marketing expenses (guess who pays for all those TV, radio and print ads?) Here is a link with answers on other terms. http://www.bylo.org/affordmf.html
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What does it mean that a hedge fund is highly leveraged?
== == Hedge Funds assume very high risk exposures, as compared for example to the risk exposure related to investing in S&P 500 index. They aim to obtain significantly higher total returns than those achieved by broad market indices (e.g., DJI). To achieve this goal, hedge funds leverage their core capital by borrowing money against the holdings in hopes of achieving greater return on borrowed capital than the cost of the loan. The other way of undertaking greater leverage (grater risk in hopes of higher than average returns) is by use of derivative instruments such as futures and options.
Canadian mutual fund interest is compounded daily?
Since there are no guarantees associated with investing in a mutual fund, the interest does not work the same as say a GIC. The mutual fund is subject to the day to day activities of the stock market, increasing or decreasing in value on a day to day basis.
What does alpha mean in reference to mutual funds?
A coefficient which measures risk-adjusted performance, factoring in the risk due to the specific security, rather than the overall market. A high value for alpha implies that the stock or mutual fund has performed better than would have been expected given its beta (volatility).
Alpha is basically a technical measure of performance over a capital price asset model (CAPM). It is based on the amount of risk taken compared to the return expected. If a fund performs better than the benchmark, the alpha is increased (0.0% represents a matching return and may indicate your active fund is a closet index fund; any number above or below would indicate the risk you assumed). Alpha is risk.
What does beta mean in reference to mutual funds?
Answer
beta
A quantitative measure of the volatility of a given stock, mutual fund, or portfolio, relative to the overall market, usually the S&P 500. Specifically, the performance the stock, fund or portfolio has experienced in the last 5 years as the S&P moved 1% up or down. A beta above 1 is more volatile than the overall market, while a beta below 1 is less volatile.
general market fluctuations, which affect all the securities present in the market, called market risk or systematic risk,second, fluctuations due to specific securities present in the portfolio of the fund, called unsystematic risk.The Total Risk of a given fund is sum of these two and is measured in terms of standard deviation of returns of the fund.Systematic risk, on the other hand, is measured in terms of Beta, which represents fluctuations in the NAV of the fund vis-Ã -vis market. The more responsive the NAV of a mutual fund is to the changes in the market; higher will be its beta. Beta is calculated by relating the returns on a mutual fund with the returns in the market. While unsystematic risk can be diversified through investments in a number of instruments, systematic risk can not.Also read http://www.mutualfundplan.com/2008/08/measurement-of-risk-return-in-mutual.html for more details about various Risk measurement tools..
How do you invest in mutual funds?
The answer depends on the type of mutual fund. Exchange Traded Funds (ETFs) are closed-end funds that trade like stocks on one of the stock exchanges. You purchase shares in these funds through a brokerage account, just as you would for any other stock. Open-end funds are available from the fund's distributor, and in many cases through other agents such as brokerage firms, investment advisors, retirement plans, etc. You simply call up the distributor or agent and ask for a prospectus (which you must receive before making any investment) and the necessary forms to open a new account. After filling out the forms and sending in a check for the initial investment, you are done.
Mutual fund is a single pool of money collected from a large number of investors. This money is invested in share, bonds and other securities by AMC. ICICI Prudential Mutual Fund offers mutual fund products that meet the customers needs.
Are there tax consequences when you move money from an annuity to a mutual fund?
The answer depends upon whether the annuity was purchased inside an IRA or employer-sponsored ("qualified") plan. If so, then money can be transferred from the annuity to any other investment in that plan (for employer sponsored plans, that means only those investments permitted in that plan; for IRAs, it means any investment you wish to purchase within your IRA) without tax.
There may be surrender chargesimposed by the annuity, but the transfer will not be a taxable event.
If the annuity was purchased outside such plans (with after-tax dollars), then any distribution from the annuity (including a direct transfer to a mutual fund) will be taxable, to the extent of "gain" (contract value in excess of the amount you invested). In addition, if you're under age 59 1/2, there will be a penalty tax of 10% of the distribution (IRC Sect. 72(q)).
How do you calculate return of market index how do you calculate index of nse and bse?
For indexes like the S&P 500 or the Russell 3000, look for figures from the data's vendors, like Standard & Poor.
Because of the need to factor in dividends, splits (and other corporate actions), index reconstitutions and changing weights, calculating total return on an index can be a fairly involved process that often requires that the person calculating it exercise some judgment - so it is difficult to prescribe a set way to calculate them.
What would happen to external fund requirements if a company reduces its dividend payout ratio?
if they reduced the dividend ratio i guess the companys external fund will be less.. because they will have more fund on hand so they wont be in need of that much of loan or they might not of need of loan at all
How do you become a licensed stock broker?
You must be sponsored by a stock exchange member then you must take and pass the Series 7 exam. You must also take and pass the Series 63 & 65, or you can just take the Series 66 (which includes both). Most people now are taking the Series 66 because it affords you the title of Registered Investment Advisor and allows you to recommend "managed accounts".
How do you transfer funds from NZ to Australia?
ANZ would probably be the easiest and cheapest if you had two ANZ accouts.
Summary for mutual fund awareness?
Mutual Fund
An investment vehicle which is comprised of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market securities and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Reliance Mutual Fund can be taken as an exemplary outstanding Mutual funds available at present.
How do you calculate cost of funds?
Effective cost of funding=[(1+foreign interest rate)(1+forward premium)]-1
Does MassMutual Financial Group offer any no load funds?
No. They are an insurance company, so they charge a commission for their services. They are in a sense a financial intermediary and when it comes to investing one of their agents can serve as a broker to help you decide what you would like to invest in, but remember whenever speaking with insurance agents or brokers that their opinion is going to have bias. They have business arrangements with other companies in order to provide you with certain different types of insurance that they themselves do not specialize in as well as in investing. The default investing company that is affiliated with them is Oppenheimer funds and they a loaded funds.
What is the meaning of fund accounting with reference to Mutual Funds?
It is the process of reviewing the net financial assets of a mutual fund company.
Is investing in time shares risky?
The only people to make money on a timeshare will be the builder and the sales staff. Sales people will tell you that you can make a lot of money, but you need to be suspicious of THEIR motivation. The simple reality is, timeshares are a waste of your money. Go for the free gift but don't buy anything, no matter HOW good they make it sound.
Time Shares may have their uses, but they are not investments.
Cheers
As an owner, you must treat your timeshare as simply a way to vacation. Do not believe that you can make money out of it through any other means. Especially with the current economy, it's very hard to sell or rent it out.
Well, with the prevalence of scams in the timeshare industry, any potential owner is a probable victim. Just make sure that you deal with legitimate companies or salespeople. Also make sure that you understand the agreements.
What is the oldest Mutual Fund?
MFS Massachusetts Investors Trust, ticker MITTX. If you would have invested $10,000 on the day it opened (July 15th, 1924) you would have over 9 million dollars at the end of February, 2009.
Who is the registered agent for Washington Mutual Bank?
The registered agent for accepting service of legal paperwork changes from state to state with each corporation. In fact, that is the point, that if a State registers a company to do business, it must have a resident there who process can be served on, (receive official tax notices, etc.). Who it is isn't terribly important, as they act as a contact point and may not even have much to do with the company. Frequently it is handled by one of a number of large national legal type cos that provide the service.
The information is always available at the Secretary of States office, if the co is registered to do business in the state. (even if it appears they are doing business there, they do not always have to be registered for business, based on a number of criteria). Also, be aware that most large Cos are actually a group of different legal entities...and the one(s) operating in a state (or even at a location), may be actually a different legal entity than the one elsewhere...you must serve the one that is actually whom you are taking action against.
However, for most things, you'll probably be at least as successful getting attention by going to the Co website and finding the name/address of likely officers..like the General Counsel or CEO, etc.. These are generally available there or by linking to their annual stockholder reports and seeing who they list as Corporate Officers and Directors.
What is difference between growth fund and dividend fund?
Equity funds usually offer three options for investors to choose from - the Dividend Payout option, the Dividend Re-investment option and the Growth option. A few funds have also started to offer a Bonus option. These options differ only in their method of distribution of returns. When you choose the dividend option, you get to partially cash in on the returns earned by the fund from time to time, through the dividends it declares. When you choose the growth option, the returns earned by the fund are retained and reflect as an appreciation in the fund's Net Asset Value (NAV). Please note that the dividend does not in any way, add to your returns from the fund. The Dividend Re-investment option authorises the fund to plough back the dividends declared into the fund at the prevailing NAV, fetching you more units. In terms of its effect on your returns from the fund, the Dividend Re-investment option is no different from the Growth option. The Dividend Re-investment option is the superior option for investors who want the tax efficiency of the dividend option and are also willing to remain invested in equities through its ups and downs. If they need liquidity, such investors can liquidate a part of their holdings at NAV. To illustrate how these options work, let us suppose you invested Rs.1000 in a fund at an NAV of Rs.10 per unit, fetching you 100 units. Six months later, because of an appreciation in the fund's portfolio, the value of the units you hold has grown to Rs 1,200. In the Dividend option, the fund may declare a dividend of Rs 2 per unit and pay out Rs 200. The value of your residual holdings in the fund would be Rs 1000. In the Growth Option, you would not receive any payout, but the value of your holdings would be Rs 1,200 at the end of six months, as the value of the100 units you hold would have grown from Rs 10 to Rs 12 per unit. In the Dividend Re-investment option, the Rs 200 declared as dividends would be reinvested in the fund at the prevailing ex-dividend NAV, and you would be left with 120 units worth Rs.10 each. Your investment value at Rs 1,200, would be the same as in the Growth option. The Dividend option (whether Reinvestment or Payout) is the more tax- efficient way of receiving your returns from an equity fund. The dividends declared by an equity fund (funds with over 50 per cent equity exposure) are exempt from distribution tax and are also tax-free in the hands of an investor. But any returns that you earn on the fund by way of appreciation in NAV, is subject to capital gains tax. Capital gains are taxed at 10 per cent if you hold the fund for less than a year; but are exempt if you hold for over one year. In the above example, if you opted for Dividend Payout, you would have no tax liability at the end of the six-month period. The same would hold good of the Dividend Re-investment option. However, if you sell your units in the Growth option at the end of the six-month period, you would have to pay short term capital gains tax of 10 per cent on the Rs.200 you earned by way of appreciation on the Growth Option NAV. Tax reasons apart, choosing the Dividend Option may also confer other advantages for conservative investors. Equity funds declare dividends only from the profits booked on the holdings in their portfolio. They have tended to pay out liberal dividends when the stock markets are in a buoyant phase and refrain from payouts when the markets are in a bearish phase. Dividend payouts thus offer you the opportunity to cash in partially on any returns that the fund has made, after a sharp run-up in stock prices. Dividend payouts also help you re-balance your equity holdings when the markets are buoyant, guarding you to an extent against a decline in values. The flip side in opting for the Dividend Option is that they could result in an opportunity loss in a rising market. In the above example, if the NAV of the fund climbed from Rs 12 to Rs 15 per unit after the dividend declaration, investors who opted for Dividend Payout would have suffered an opportunity loss on the Rs 200 that they have pulled out of the fund by way of dividend. Their appreciation would be restricted to the Rs 1,000 they have invested in the fund. In contrast, investors who have opted for the Growth and Dividend Re-investment option would have earned an appreciation on the entire sum of Rs 1,200 that they retained in the fund.
Who is the highest paid hedge fund manager?
== == Henry Paulson earned over $2B in 2007 through Paulson Co. his hedge fund group that bet against sub prime loans before anyone else knew what was coming.
Edward Lampert of the US-based ESL Investments earned an estimated $1.02 billion (£550m) in 2004, making him the highest paid hedge fund manager, according to rankings released today by Institutional Investor magazine. Mr Lampert, was the first to crack the $1 billion mark in the four-year-old survey despite lackluster returns for the notoriously secretive hedge fund industry as a whole.
Are wire transfers considered certified funds?
Yes; wire transfers are a form of certified funds. When you transfer money it is paid upfront. Therefore, the money is guaranteed which makes it certified.
How do you locate shares in Allstate Enterprises INC.Stock Fund from 1972?
Not sure what a "stock fund" is. Perhaps you've misplaced some stock certificates? In that case, contact Allstate's transfer agent: http://ir.allstate.com/phoenix.zhtml?c=93125&p=irol-transferShareholder If you are looking for an old ticker symbol/value, maybe try Allstate themselves: Investor Relations
The Allstate Corporation
2775 Sanders Road
Northbrook, IL 60062-6127
(800) 416-8803
invrel@allstate.com If this is regarding some sort of Employee Stock Option program, I would contact Allstate at Investor Relations, above.