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Mutual funds update prospectus on a regular basis. Learn how often mutual funds update prospectus with help from a certified financial planner in this free video clip.
The complex relationship between shareholders and managers in the companies they own can result in some conflicts of interest that result in the need for shareholders to take direct action in the company. Managers of mutual funds who purchase these companies on behalf of shareholders are considered agents of the shareholders. Their actions can result in direct intervention by shareholders, but this is not usually intended.
If you have lost money on a mutual fund investment, Internal Revenue Service tax rules allow you to declare the loss as a capital loss and use the loss as a tax deduction. Capital losses are first used to reduce any capital gains you have to declare. If you have excess losses or no capital gains, a loss from the sale of mutual funds can be used to lower your taxable income.
Whether a mutual fund owned by a deceased person must pass to the estate prior to distribution to beneficiaries depends on how the ownership is titled and whether the decedent made provisions to transfer the assets upon death. If titled simply in the decedent's name with no transfer, it must be renamed as "the estate of ..." as an estate asset before passing to beneficiaries.
Mutual funds sales representatives help investors diversify their investment portfolio by selling them financial products that include a combination of stocks and bonds. Often referred to as stock brokers or financial advisors, these financial services sales agents provide people with a means to meet their financial goals. The Bureau of Labor Statistics reports that over 275,000 financial service representatives made up a part of America's workforce in 2010. Salaries for these representatives often exceed the six-figure salary mark.
Mutual fund technicians have a solid foundation in the principles of accounting and finance. They must understand such concepts as risk management, investing and trading. Mutual fund technicians use sophisticated mathematical analysis tools and a strong understanding of mathematics each day. The job title of mutual fund technician falls under the broader category of personal financial adviser, and salaries vary by experience and employer.
Selecting a good mutual fund is not as difficult as many investors think. A mutual fund is run by a manager who uses money from different investors to buy stocks, bonds or other investment vehicles. Much of the information that an investor needs in order to decide if a mutual fund is a good investment can be found in the prospectus, which is a document that has all of the details about the fund.
Medicaid is a federal program designed to provide free or low-cost health coverage to seniors, children and low-income families. Eligibility to participate in Medicaid programs is based on income, family size and assets. In the state of Louisiana, elderly residents can establish an irrevocable living trust to protect their assets and remain eligible to receive Medicaid services. You may consider creating an irrevocable trust if you plan to apply for Medicaid benefits.
Trusts come in a variety of forms, and all have different tax ramifications. Trusts can be revocable or irrevocable --- irrevocable trusts usually enjoy more tax benefits. Credit shelter trusts, irrevocable life insurance trusts and generation-skipping trusts may all provide tax-free disbursements to beneficiaries, though if the trust has more than a specified value, disbursements may be taxable.
Diversification is the practice of spreading your investment money over a number of stocks or other financial securities. Diversification reduces risk, but it also reduces earning potential. Over diversifying your portfolio can cause you to earn lower investment returns, so the key to investing successfully is finding the right balance between risk and potential reward.
It's a tough decision to sell your house, and frustration can set in easily when your home sits on the market a long time. Several common problems are at the root of most home sale problems. Learn to recognize them and do your best to work around them. With a little thought and careful planning, you can take control of the situation and make changes to move the process along.
Education trust funds help parents and other relatives save for a child's education and provide some possible tax benefits. As long as the contributors stay in the gift tax exemption range of under $13,000 per year, most of the money in the trust can be distributed tax-free. However, the trust must pay taxes on any income -- interest, dividends -- over $600 each year and can choose whether to make the beneficiary pay taxes.
The Ohio Transfers to Minors Act spells out state rules for custodians who manage property given to minors as inheritance or a gift. The law covers the custodian's responsibility in managing the money; her rights to compensation for the job; and the deadlines for turning the money back to the minor when he comes of age.
Naphtha is a refined petrochemical product used primarily as a feedstock for the production of high-octane gasoline. Like gasoline, it is refined from crude oil, but it is lighter -- meaning less hydrocarbon rich -- and more volatile, making it inappropriate for use as a engine fuel. The price of naphtha has been closely linked to petroleum but varies slightly with demand.
When you invest in the stock market, you can make money in two different ways. You can make money by selling your appreciated shares for more than you paid, or you can make money by holding the stock and collecting the dividends. In either case, you must pay taxes on the money you make. You must pay taxes on the dividends you receive, even if you reinvest those dividends and use them to purchase additional shares of your favorite stock or mutual fund.
Investors interested in purchasing shares of a new stock or shares in a mutual fund will want to study the prospectus carefully. Federal laws in the United States require any company issuing new securities to register a prospectus with the Securities and Exchange Commission, or SEC. The prospectus will contain standard information, such as the company's policy on dividends, a business plan, current financial condition and details on management and future plans. In addition, knowing the currency of the information contained in the prospectus will help the investor to make smarter choices with investment dollars.
Assets are valuable goods or securities that can be monetized by selling them for cash or increasing productivity. Assets either appreciate or depreciate in value over time so if selling is the strategy, then it is important to manage the asset in such a way that it brings the highest price possible, and at the most opportune time. For a business asset, increase productivity by cutting costs or growing revenues.
Investments encompass a broad range of instruments, including stocks, bonds, options, mutual funds, derivatives, commodities and precious metals. Investments can also be antiques, collectibles, stamps and coins. Investors want the ability to turn at least some of their investments into cash quickly if needed. They want marketable investments or securities.
Investors in mutual funds receive a fund prospectus when purchasing a fund. Updated versions of the prospectus are sent to investors throughout the year as per legal requirements. While it can be tempting to shove the prospectus in a drawer or throw it away, remember it contains relevant information that will directly impact your pocketbook. While many funds offer a summarized version of the prospectus spanning one or two pages, the traditional prospectus contains the bulk of information on fees and administration.
In business, personal finance and investing, an asset is one of the basic elements of accounting. It is anything that has value and that the owner can sell to raise cash. Since assets frequently change value based on what others are willing to pay, determining the expected cash value of an asset for some future point in time is a complex process.
In Pennsylvania, the primary custodian of a child is said to have primary physical custody of the child. Custody rights also can be shared as Pennsylvania allows for partial physical custody, shared physical custody and visitation rights. In determining which parent to appoint primary physical custodian, or whether to appoint a primary custodian at all, Pennsylvania courts will look at many factors.
The BRIC nations represent emerging market economies of developing countries around the world. Brazil, Russia, India and China represent these regions where the economies possess great potential for future growth. There are other emerging market countries, but economists refer to the BRIC nations because these are the largest of the developing economies. Evaluating performance in investment funds that contain exposure to BRIC nations includes comparing fund performance with that of comparable industry indexes or with a similarly comprised fund managed by a competing firm.
When you invest in a mutual fund, you should do so with a long-term approach. The day-to-day movements of the stock market and mutual funds can be extreme, but if you are a long-term investor, those movements take on less significance. Even so, there are times when tracking the daily movement of the funds you own can be a wise move. For instance, if you own an index fund, you would expect it to move in tandem with the underlying index it tracks. If you find a big discrepancy in the daily performance of that fund versus the market, that…
Mutual funds charge various fees to pay for fund operations. Unlike a typical business, mutual funds rely on third-party service providers to conduct their operations of investment management and other administrative and marketing tasks. Mutual funds pay service providers a certain percentage of the fund asset value based on the services they provide. A transfer agent helps a mutual fund handle shareholder transactions and other account services. Transfer agent fees paid by mutual funds may or may not be disclosed in a fund prospectus, depending on payment arrangements.
If you need to build a diversified portfolio with a limited amount of money, buying a mutual fund can be a smart move. Mutual funds work by pooling the money of many different investors and using that cash to purchase a diversified basket of stocks, bonds and other securities. As an investor, you can check the fund prospectus and annual report for a more detailed picture of what the fund holds and how it invests your money.
Mutual funds allow investors to pool their resources and have a professional money manager buy and sell securities on their behalf. There are two basic methods of mutual fund portfolio management: active and passive. Active managers research stocks and bonds and attempt to outperform the market, on a risk-adjusted basis. In exchange for their efforts, they are paid a percentage of fund assets every year. With passive management, the fund buys the securities in an index, weighted according to market capitalization. The passive manager makes no attempt to beat the market, but merely wants to replicate the performance of their…
Commodities are an important asset class and can be a viable investment alternative to stocks and bonds for investors looking for broader investment diversifications. But investing in commodities directly can be challenging for small, individual investors as participants in commodity markets traditionally are commodity producers, users, professional traders and speculators. Thus, commodity mutual funds provide an easy way for individual investors to gain commodity exposure. Commodity mutual funds come in different types and use different investment strategies. Depending on their preferred market exposure within particular markets, different investors may choose different types funds as their best commodity mutual funds.
A mortgage custodian performs record-keeping services for lenders and mortgage servicers. Custodians typically consist of various financial institutions that agree to preserve and check original mortgage documents for another mortgage lender. The lender decides who the custodian is, and borrowers do not have a say in the selection.
The foreign exchange, or Forex, is widely used by short-term traders who swap one currency for another country's currency. Nevertheless, it is possible to make long-term Forex-related investments as well, either directly buying positions using a Forex broker or indirectly using different types of Forex funds or managed accounts.
The mutual fund accounting process involves a series of accounting tasks aimed at recording any changes to a fund's financial positions. Using the same accounting principles, mutual fund accountants record changes to fund securities holdings, income received and distributed, expenses incurred and shareholder activities. However, unlike a typical accounting process that incorporates accumulated accounting data to compile financial statements quarterly or yearly, the mutual fund accounting process revolves daily because of the need to calculate net asset value (NAV) each trading day.
Mutual funds as investment companies are structured by law in the form of corporations with their boards of directors. At the operational level, however, mutual funds are externally managed in all functional areas, including general fund administration -- a service provided by an outside mutual fund administrator. A retained mutual fund administrator performs a variety of administrative functions per the mutual fund administration agreement. The use of an independent mutual fund administrator can also protect fund shareholders' interests.
Retirement savings accounts are investment accounts specifically designed to help you save money for retirement. These accounts allow you to deposit money and invest in a variety of investments without paying tax on the money accumulating in the account. However, there are restrictions on accessing retirement funds prior to your normal retirement age.
It used to be that if you wished to buy a mutual fund through your financial adviser, you had few choices. If your adviser worked for a company that represented a family of funds, you would end up paying a sales commission and you could not know if the fund your adviser recommended was the best choice or one that paid him the highest commission. F-series funds were introduced as a solution to this problem. An F-series fund separates the fees you pay your adviser from the fees you pay to own your fund.
A mutual fund portfolio analyst is a type of financial analyst who specializes in mutual fund investments; therefore, salaries for this profession are similar to those of other financial analysts. Mutual fund portfolio analysts research extensive financial data, using the results to advise investment decisions by mutual funds and pension funds, as well as individual and institutional investors.
Electrical engineers work on the design, development, manufacture and installation of electrical equipment, components and systems. The U.S. Bureau of Labor Statistics forecasts slow employment growth in this profession, primarily due to international competition. The best job prospects should be in companies providing engineering services to manufacturers. Most electrical engineers in Pittsburgh earned at least $62,000 per year as of 2009.
Marketable securities are generally defined as equity and debt investments that provide a return on investment and high liquidity. Marketable securities have stable and orderly public markets of ready buyers, which facilitate high liquidity. Consequently, they can be immediately converted into cash without risk of considerable loss in value. U.S. Treasury securities, blue-chip, widely-traded corporate stocks, bonds and commercial paper are good examples of marketable securities.
Performance evaluation of mutual funds provides the basis for investors when choosing mutual funds. Performance evaluation often involves identifying performance measures and making relevant comparisons. Investors may track mutual fund performance in different ways, commonly using net asset value or total fund return, depending on their investment focus -- long-term capital growth or immediate investment income. To make relevant comparisons, investors should evaluate mutual fund performance within the same fund categories.
Mutual funds as investment companies have a corporation-like structure, including a board of directors. However, mutual funds don't have their own operational units nor employees to perform various day-to-day functions. Instead, mutual funds are externally managed by different third-party service providers -- such as investment advisers -- that contract with the fund's board of directors. Mutual funds are also required to maintain strict custody of fund assets via a board-appointed custodian.
Opening an IRA can be a great way to save for retirement while lowering your taxes, but the IRA account itself is simply the vehicle. What you power that vehicle with has a huge impact on your returns, so it pays to look for mutual funds which maximize the benefits of this popular retirement plan.
Investing in a mutual fund can remove the burden of having to choose individual securities by leaving that up to a professional. However, before you put your money in the hands of a mutual fund manager, you need to educate yourself so you can evaluate funds and choose the right one for you.
It is not a good sign when a mutual fund is on a watch list. Typically, it is an institutional investor such as a pension fund, endowment or a foundation that might place an under-performing mutual fund on a watch list. This is a warning to the mutual fund that if performance does not improve -- or if other conditions that led to the watch-fund status do not change -- the mutual fund could be terminated from an investment mandate.
From time to time the right side of your browser will display offers to help you get government grants to pay your bills or to invest in stocks. Similar offers come through your junk mail, urging you to click onto such websites. The websites look professional, often with something resembling a government seal. They have names such as U.S. Financial Assistance and make claims such as "free money." If you go to one of these websites, it typically will ask you for your name, email address and often additional information. The websites often claim you have nothing to lose. In…
Mutual funds are pooled investments. This means the company takes money from a number of investors, pools all the funds together and purchases a variety of securities with those funds. Each investor owns a pro rata share of all of the securities in the mutual fund. This gives the investor the twin advantages of diversification of his investments and professional management of his funds. Mutual funds do not provide those advantages for free. Before investing, count the cost of mutual fund fees and expenses.
As an investment strategy, the mutual fund has attractive incentives. They can instantly diversify your portfolio, harvest yearly returns and provide a welcome stream of passive income. Although the term "mutual fund" has the ring of safety and security, like all investments, they present a degree of risk. Performance varies from fund to fund and fees can eat into your gains. Calculate the total outlay of costs before investing.
When an investor considers selling a portion of her portfolio, she must take into consideration more than just the market value of her stock positions. She must also consider the net liquid value of her stock. The net liquid value is the amount of money that can actually be received for the stock when sold. For various reasons, this may not always equal the current market price.
According to Janet Luhrs, founder of the voluntary simplicity movement, "Any time that is not spent on loving what you're doing is wasted." Voluntary simplicity is about cutting through the stress and hectic pace of modern living, and focusing instead on the things that mean the most to you, such as simple pleasures and pursuing your passions. But voluntary simplicity can be economically challenging if you have made financial commitments such as paying down a mortgage or financing your children's college educations.
If you have money to invest, consider a mutual fund. These companies manage multiple investments all with a common theme or type: small-company stocks, government bonds, commodity stocks, foreign stocks and so on. The mutual fund represents a means to diversify your investment dollars, a practice that allows a measure of greater safety and stability than making single stock or bond investment on your own.
Like the stock market, mutual funds generally expose an investor to two eventual outcomes -- value appreciation or decline. Since a mutual fund is merely a collection stocks grouped together for convenience, the financial industry expects investors to trade increased risk for the chance of increased return on investment. To find an absolutely protected investment, you would have to choose either certificates of deposit or Treasury bonds, which are both backed by the federal agency known as the Federal Deposit Insurance Corporation (FDIC).
Mutual funds are a way for investors to gain exposure to a variety of different securities, including stocks and bonds, with one investment. Certain mutual funds pursue specific industries, ranging from the retail sector to technology and energy. A mutual fund could be devoted to a specific industry, or it could have wide-ranging exposure across sectors. Some mutual funds are more niche-focused than others and can invest in a sub-sector within an industry.
Volumes have been written about the analysis of mutual funds. Active topics of debate include the superiority of growth versus value styles, the validity of different measurements of risk, and whether active fund managers can consistently add value over investing in a passively managed low-expense index fund. The juries are still out. But for those who want to consider actively managed mutual funds, there are a few key principles that apply throughout all kinds of economic and market conditions.
A mutual fund is an important financial asset. Deciding the right one to buy requires a lot of research. An investor needs to carefully consider his investment objectives, risk tolerance and financial situation before making his decision. The issue of proper timing of a mutual fund purchase should be made based on your financial situation and willingness to manage tax liabilities, and not on asset price predictions.
Mutual fund investing has made equity investments available to everyday folks. Nearly 43 percent of all households in 2010 owned mutual funds compared to only 6 percent in 1980, and the number of mutual funds available now exceeds the number of listed securities. The amount of choices and the competition to market these funds is strongly reflected in how investors make their decision to buy and sell mutual funds.
There are thousands of individual mutual funds for an investor to consider. However, there are only a handful of basic types of mutual funds. By understanding the different types of mutual funds, an investor can determine which type of fund is best for her specific needs. This will simplify the process of comparing mutual funds so the investor can choose a specific fund.
One of the keys to avoiding investment risk is to spread wealth across many different investments, also known as diversification. Many investors prefer buying mutual funds to individual stocks because they offer greater diversification. Mutual funds are professionally managed investments that purchase a variety of underlying assets like stocks and bonds.
Investment managers are not usually looking for ways to liquidate funds, whether they are mutual funds or hedge funds, unless there is a change in strategy of some sort. When an investment fund is liquidated, all of the assets inside, such as stocks and bonds and perhaps real estate, are sold. Some investments are more liquid than others, which represents the ease in which a security can be sold and turned into cash.
A mutual fund is a basket of stocks or other securities that investors can own together mutually. When you buy shares in a fund, you own a portion of all the securities in the fund along with other investors. There are thousands of different funds to choose from and the right type of fund for you really depends on what your goals are and how long you have to achieve them.
Mutual funds are a very common type of investment option, especially for casual investors who are not interested in micromanaging their securities but simply want to set money aside to grow. A mutual fund can invest in nearly any type of business or resource across the world through a variety of instruments, usually including both stocks and bonds. The fund acts as a pool of investor contributions, using these contributions in varied investments and distributing the returns based on how much each investor puts into the fund.
Selecting a relatively convenient investment strategy essentially comes down to choosing between mutual funds or picking individual stocks, bonds or commodities. Choosing mutual funds has both advantages and disadvantages you need to understand before you make your final decision based on your own circumstances.
The most conservative investment is a money market mutual fund that invests only in short-term government-guaranteed securities. The shorter the maturity, the more conservative the investment because shorter maturities are less subject to market and interest rate risk than longer maturities. While bonds are considered more conservative investments than stocks, high-grade common stock of major companies and utilities is also a conservative investment. However, no matter what you choose to invest in, never fail to monitor its status as global events have a way of altering the financial security of even the safest investments.
Employees of a business that provides a SIMPLE IRA retirement plan benefit by being able to contribute to the plan with pre-tax dollars and by receiving mandated annual contributions to their individual accounts from their employers. Individuals participating in a SIMPLE IRA plan at work may increase their retirement savings by making additional tax-deductible contributions to traditional IRAs outside of their work places. The Internal Revenue Service (IRS) limits the amount individuals may contribute to their employer-sponsored IRAs and their traditional IRAs, however.
Investors in stocks have three options when considering a purchase: they can build their own stock portfolios, solicit the help of a financial adviser to assist in the process, or purchase mutual funds. Mutual funds provide investors with fund management and diversification. In the investment world, diversification is synonymous with risk management. There are several tools investors can use to help measure mutual fund risk.
Debt securities are loan agreements under which a borrower agrees to repay a creditor a certain amount of interest over a set period. Many types of debt are marketable, which means the original creditor can sell the debt to an investor. When you buy a debt mutual fund, you buy shares in an investment company that owns a portfolio of debt securities.
Mutual funds are collections of stocks, bonds and other financial instruments managed by professional investment companies. Mutual funds can be divided into broad categories. Stock funds invest in company equities. Bond funds focus on various types of bonds, as the name implies. Money market funds are designed to be more secure. Asset allocation funds divide investments using a weighted system.
Mutual funds are an excellent means for novice investors to begin building an investment portfolio. Starting with mutual funds is a great way to learn the basics of investing and establish a foundation for purchasing other investments in the future.
When choosing a mutual fund to invest in, the type of management that it uses is an important factor for you to consider. Some mutual funds track an index, while others are actively managed by a fund manager who chooses investments for the portfolio. Actively managed funds do not always beat the market, but when they do they can be attractive to investors.
Blue chip shares are investments in well-established companies and leaders in their respective industries. Blue chip companies in general are financially stable with a history of solid earnings. Investors buy blue chip shares for investment safety, predictable returns, consistent dividend payments and their defensive nature in market downturns. However, investors may have to trade the benefits of owning blue chip shares for certain disadvantages such as low returns, slow growth, little volatility and expensive pricing, which can also become disincentives to some investors when considering blue chip shares.
The stock market in the United States is made up of all the publicly traded companies. The physical location where stocks are bought and sold are called exchanges. In the U.S., the three largest are the New York Stock Exchange, the NASDAQ, and the American Stock Exchange. Smaller regional exchanges exist in places like Chicago, Boston, Philadelphia, and Phoenix. When you buy a stock through an exchange, you literally become a fractional owner of the underlying company; the more shares you own, the larger your ownership.
One of the most important aspects of any sound investment plan is diversification of assets. In other words, "don't put all your eggs in one basket." Mutual funds, which by their nature invest in a wide variety of securities, provide an excellent opportunity for individual investors who may not have sufficient resources to properly diversify their portfolios on their own.
Few better investment options have been created than the modern stock market. There is almost no investment that can provide a comparable rate of return over the long term for your money. Investing in stocks is not without its risk, but this is a risk that can be managed, and even used to the advantage of the skillful investor. Stocks repay intelligence and research. A well crafted stock portfolio can greatly increase your personal wealth.
You can overcome investing challenges. The myriad investment products and investing strategies available can be confusing. However, with the right tools and research, you can be successful at managing your investments. There is no "one size fits all" approach. Your investment decisions must be tailored specifically to you. You must consider your time horizon, tolerance for risk and personal financial goals. It is not always a choice of one investment type over the other, but rather how to establish the most appropriate combination
Many investors like to keep a small portion of their portfolios in gold and other commodities, and there are many ways to play the gold market. You can, of course, purchase gold mutual funds, but you can also use gold ETFs and gold mining stocks. If you like the security of physical gold, you can invest in gold content coins or add collectible gold lines to your asset base.
Choosing a mutual fund can be a daunting task. There are thousands of mutual funds in the market, each designed with different investment objectives, investment styles, asset classes, and security-picking strategies. There are, however, a few constants to consider when selecting a mutual fund for your IRA or other retirement account.
If you're researching mutual funds, you'll see the nine-square grid known as the Morningstar Style Box in all fund literature. Along the top, it neatly divides funds by investment strategy: "value," "growth" or "blend." Growth seems easy enough -- most investors understand that investments should appreciate over time, preferably quickly. Value, on the other hand, is murkier. Choose a value fund and you're following many great investors, but there are drawbacks as well.
Re-balancing your portfolio is one way to reduce risk. By doing so, you make sure that your portfolio is not dependent on any class or type of investment. You should re-balance your portfolio at least once each year. The primary reason is that a certain type of investment may be popular for a few years and it may increase in value. But nothing remains popular forever, and it will be replaced by another category of investment. You're only fooling yourself by trying to anticipate the next trend.
When you own an annuity, you own an insurance policy. This insurance policy allows you to shift the responsibility of providing a retirement income from yourself to the insurer. But, if you want to change or switch annuities prior to retirement, there may be some benefit to you as a policyholder.
Diversification is an investment imperative. Building a portfolio that grows your wealth while providing preservation of capital is a tricky undertaking. Mutual funds offer diversity and a level of safety, spreading risk across a wider spectrum of securities than could be accomplished with a limited number of individual stocks and bonds. Sector fund investing offers the opportunity to invest in new technologies, new industries, small companies, overseas opportunities and industries poised for significant growth.
Mutual funds offer investment opportunities to all investors, including those who may only have a small amount of money to invest. There are numerous funds available offering various share classes and payment options. Maneuvering through all of the information to discover the best choices can prove daunting. Understanding mutual fund basics, such as net asset value, makes it easier for investors to make the right selections.
Many investors do not understand the nature of hedge funds, largely because they are only available to a select group of people. Many different investment management companies offer at least one hedge fund to those who can afford it. However, not every investor is aware of its existence, nor has access.
Undoubtedly, if you have considered investing in a mutual fund, the word diversification will come up sooner or later. That's because when you do invest in a mutual fund, you are buying into a portfolio of financial instruments that comprise the fund and hand-picked by the mutual fund manager. No two mutual funds are alike even if they invest in the same class of investments. Mutual fund categorization varies by type of investment and sector.
Mutual funds are companies that pool money from multiple investors and use it to invest in bonds, stocks and other assets. Mutual funds usually use multiple types of investments instead of just investing in stocks or just investing in bonds. Mutual funds are riskier than other types of investments, but can lead to higher rates of return.
Searching for and choosing the right home loan can be almost as daunting as finding the right house to buy. There are several varieties of mortgage loans to choose from, and many of those options have different rates associated with them. It is important to go into the process with an understanding of what the options and prices are and how to spot and avoid hidden costs.
The variety of investments available on the market today can be overwhelming; so it pays to have a basic understanding of some key concepts when it comes to building your mutual fund portfolio. Your portfolio should reflect not only your financial goals and dreams, but your attitude toward risk as well. The good news is that mutual funds can help to simplify investing by providing levels of management and diversification that would be difficult for most investors to match on their own.
When you make an investment in a mutual fund, there will come a time when you want to sell it. Whatever your reason for the sale, the procedure is the same for nearly every mutual fund, and usually faster than selling stocks or bonds due to a shorter settlement time. Sales in mutual funds are referred to as "redemptions" because you are selling your shares back to the fund itself, rather than to another buyer.
Accumulating mutual fund shares slowly over time, a process known as dollar cost averaging, is one of the most effective ways to build up your portfolio. Many people choose to dollar cost average into their favorite mutual funds with monthly transfers from their bank accounts, but if you prefer, you might be able to invest as frequently as once a week.
Individuals new to investing often look to mutual funds as a viable means of entry into the world of investing. A fair number among the thousands of funds available in the United States require as little as a $100 minimum initial investment. Thus, mutual funds can be a means to build a solid diversified portfolio for individuals without a large amount of annual disposable income. Knowing the basics of how mutual funds operate can assist you in choosing the right options for your goals and objectives.
A mutual fund is an investment vehicle that operates as an investment pool. Initial investors put up prearranged amounts and are issued shares of the mutual fund representing their ownership interest. After that more investors can buy into the mutual fund by buying shares at the current net asset value, NAV, which could be more or less than than the original NAV depending on how the investments of the mutual fund have performed.
Home shoppers spend days looking at homes for sale online and wandering through open houses. When they find the perfect house, most home buyers need to take out a home loan to pay for the house. Home loans, also known as mortgages, allow the buyer to purchase the home today and spread the payments over several years. Several loan options exist for potential home buyers, leading borrowers to wonder which loan makes sense for them.
One of the best things about mutual funds is that there are so many different varieties. No matter what your investment style, financial goals or appetite for risk, there is a mutual fund out there that provides what you are looking for. Whether you are looking for aggressive growth or relative safety, you can find a mutual fund that fits the bill.
When interest rates on tried and true forms of earning investment income in our senior years, such as bank certificates of deposit (CDs) and passbook savings accounts, dip dramatically, looking elsewhere for steady earnings may become a necessity. Research into the types products offered as mutual funds may assist seniors in finding investments that suit a personal portfolio.
The trading of foreign currency on international markets is commonly referred to as foreign exchange or "Forex" trading. Traders make money by buying currencies and then selling them as their value appreciates relative to other currencies. Although Forex trading can be lucrative, it is also extremely risky, as currencies can undergo sudden changes in value. However, traders can use a few strategies to increase their odds of success.
When you first get started investing, the number of options available to put your money into is a bit overwhelming. Three options that you could put money into are CDs, mutual funds or a 401k. While these three items share some common characteristics, you get different benefits from each.
A bank can sell individual loans that it makes to borrowers and debt securities that provide a portion of the income from several loans. For example, a mortgage-backed security provides the investor with income from several mortgage loans. A security provides diversification benefits because the investor doesn't hold a single loan, and the terms of the security can reduce the risk of certain types of losses.
Mutual funds pool investors' money and invest in stocks, bonds, short-term money-market instruments and other assets. Mutual funds are popular because they offer diversification and professional money management. The thousands of mutual funds all over the world can be classified into a few broad categories, including money market funds, bond funds and stock funds.
The cost of college tuition has historically grown at a faster rate than inflation, making it increasingly expensive for the younger generation. Simply saving money for college can be difficult; especially if interest earned on that money is low. Investing money in mutual funds offers education savers a way to get better returns on their savings, and buying mutual funds in a tax deferred savings account can allow that money to grow tax free until you need it.
A plethora of services contain sub accounts and primary accounts. Internet service providers, banking platforms, video game systems and many other services contain this sort of delineation between account types. Depending on the specific service type, you may or may not be able to change a sub account into a master account. You can perform some investigative steps to make this determination and ultimately change your account.
The lending limits of a mutual fund is regulated either by the Securities and Exchange Commission or the Internal Revenue Service. The difference depends on the whether or not the mutual fund sits in a retirement account and whether or not the account is approved for lending.
Mutual funds have grown enormously in popularity in recent decades. Approximately 40 percent of U.S. households own mutual fund shares, either in a retirement plan or in taxable accounts, according to the Investment Company Institute. Mutual funds offer various benefits to investors who prefer a simple, hands-off approach to investing and do not have huge sums to spend on individual stocks and bonds.
The mutual fund industry is a multi-trillion-dollar industry, serving primarily the general investing public. Mutual funds, a type of investment company, are closely regulated by the government for the protection of the public interest. Mutual funds are managed by investment advisers that may use different investment strategies to achieve stated fund objectives. Demand for mutual funds mainly comes from individual investors who may find it difficult to invest directly in the financial markets. Mutual funds offer various fund products of different investment choices. Mutual funds are marketed to investors both directly by fund companies and indirectly through sales forces.
As investment opportunities increase worldwide, finding factual information is becoming more complex. Securities issued within the United States must provide a prospectus and registration statement under the Securities Act of 1933. Securities issued outside the Untied States do not have the same requirement under Regulation S.
Mutual fund fees and commissions can seem very high, especially if you get hit with a front- or back-end load charge. It makes sense to think that these expenses should be bundled with other investment expenses and deducted from your taxable income. In one sense, this is true -- your mutual fund commissions are deducted from your tax basis and therefore from your taxable gain -- but you cannot deduct them as a line-item expense.
A money market account (MMA) mutual fund is an account in which several people pool their money to invest in a low-risk, low-return financial vehicle. Investment clubs and social-savings clubs may take advantage of an MMA mutual fund. It is suitable for people who aren't necessarily seeking a large return on their investment in a short period of time. These people are more interested in avoiding the risk that comes with investment accounts with larger returns. They often use a MMA mutual account to fund an upcoming event, purchase or business venture.
When a company offers its stock to the general public for the first time, it can represent a significant opportunity for investors. If you have an individual retirement account, you might be interested in putting some of your retirement money into this initial public offering or IPO. As a general rule, you can invest in an IPO with these funds, but it may not be as simple as you would hope.
Mutual funds offer prudent investors a way to diversify their money, which reduces risk. Thousands of funds are available, each specializing in a particular market sector or an asset type, providing many choices for investors. While funds offer a way to reduce risk, there are ways you can help improve your performance and further reduce your risk by making the right choices when you buy.
"Total investment" can mean many different things, depending on the phrase's context. The broadest definition of the phrase is the total amount of financial resources that a person or entity either has in a project or must put into a project. The phrase often appears in reference to the amount of capital necessary to start a business.
Mutual funds are a common investment vehicle used by many individual investors who wish to invest in the financial market. Investing through mutual funds, investors do not need expert knowledge and investing experience related to the financial instruments that their funds are invested in. Professional investment managers are responsible for the deployment of investor money. Mutual fund investing can be different from investing directly in the financial market, with certain pros and cons. Mutual funds come in many forms based on fund investment styles and fund investment holdings. Investing in mutual funds can earn investors returns in different ways, but…
Mutual funds can be a wise investment for some, because they provide the kind of diversification that would be difficult to obtain any other way. When you buy a mutual fund, you are buying a part ownership in a wide variety of securities, including stocks, bonds or a combination of the two. Choosing the right mutual fund requires evaluating your needs and your tolerance for risk.
What happens to a mutual fund investment when a fund owner dies is dependent upon the tax structure of the mutual fund. Many mutual funds are owned in retirement savings vehicles, such as Individual Retirement Accounts, 401k and 403b plans. Others are held in non-qualified, taxable accounts. There are different options to beneficiaries depending on which structure is owned.
Investing in mutual funds allows you to get a level of diversification that would be very difficult, if not impossible, to obtain on your own. But you need to be careful how and where you invest in mutual funds. Some firms charge exorbitant fees and sales charges for the privilege of owning their funds, and those high fees can really eat into your returns over time.
Investing is a common strategy for building wealth that involves purchasing ownership in an asset such as a home or buying stock in a company and selling the asset at a later date for a profit. Mutual funds are investments in which investor funds are pooled in professionally managed accounts and used to purchase baskets of underlying assets.
Target investment funds are mutual funds, more commonly referred to as target date retirement funds. The funds are offered by mutual funds companies with a range of future retirement dates. Someone who is 40 in 2011 would pick a target date fund for the year 2035 to save money for retirement at age 65.
Foreign exchange trading, better known as Forex trading, is the buying and selling of foreign currencies. After purchasing one form of currency, traders wait for the currency to appreciate, then trade it back at a higher price. Unlike with stocks traded on exchanged, foreign currency is traded 24 hours a day between various brokers. It is possible to make money trading Forex, but it can be very difficult.
Mutual funds fall into one of three main categories: money market funds, bond funds and stock funds. However, there are combinations and variations within these categories as well.Money market funds generally carry the least risk, because they are required to invest in short-term U.S. government and high-quality corporate bonds. Mutual funds are professionally managed investment pools, and, as such, are often seen as less risky than individual investments, but all investments carry risk.
Finding ways to invest your money can help you save for retirement or grow money that you don't need immediate access to for spending. But with so many investment options it can be difficult to know what constitutes responsible investing. Mutual funds combine the growth potential of the stock market with a reduced degree of risk, which makes them appropriate for personal investment for many individuals.
Mutual funds provide low-level involvement with high-level expertise for those who want a "set it and forget it" approach to investing. Investors rely on careful fund management to yield good returns, but it can be difficult to know just how to analyze a mutual fund's behavior over time. A basic understanding of mutual fund performance is a necessary tool when deciding which funds to buy as well as when it's time to move on.
Mutual funds are investment instruments designed to provide investors with growth or income. People can diversify their investment holdings by purchasing mutual funds, which contain a variety of stocks and bonds. Diversification minimizes risk levels because investors are not reliant on the performance of any one security or sector of the economy.
The United Services Automobile Association (USAA) is a banking and insurance financial services company that serves current or former members of the U.S. military. It is allowed by federal law to share the personal information of its members.
A mutual fund is a pool of stocks or other financial securities in which you can buy partial ownership. A mutual fund account is the shares you own in a particular fund. Most brokerage accounts allow you to buy mutual fund shares. You can also buy mutual funds through many banks, insurance companies or through your 401k plan at work. .
A quick scroll through the Accrediting Board for Engineering Technology's list of accredited programs in engineering reveals not only the hundreds of available options, but the thousands of schools offering the training for engineering careers. While the engineering field itself is a viable major of study, engineers who specialize will find a variety of salaries and job opportunities depending on industry and location in the country.
Morningstar lists over 13,000 mutual funds available for investors. Each mutual fund is different, so consequently, the average returns for each fund will be different. With that in mind, according to Yahoo! Finance, the average annual return for stocks since 1926 has been 10.3 percent. This does not mean stocks earn over ten percent per year. In 2008, for example, stock investors lost over 27 percent and the following year they gained back over 17 percent.
When a fund is up for liquidation, it means that the fund company has decided to either sell off the fund's assets or merge the fund's holdings into another fund, preferably a well-performing fund within the same fund family. If a fund is sold outright, the fund distributes the proceeds to its fund shareholders. If a fund is merged with another fund, the fund assigns new shares to its shareholders based on the relative figures of the net asset value of the two funds. Such a liquidation is likely caused by poor fund performance, and often leads to shareholder redemption.
If you itemize your deductions on your annual tax return, you may spend hours pouring over IRS publications to determine what does and does not qualify for deduction. Add an investment portfolio to your sources of income and you have a whole new set of deduction opportunities. Fortunately, the IRS guidelines for mutual fund expense deductions are easy to understand.
Kids get bored easily in classrooms. When they participate in hands-on programs, they have fun while learning. Programs like this can draw them back into learning, fostering the intellectual curiosity that is vital to keeping kids in school. Oppenheimer Grants give teachers the ability to bring creative, interactive learning projects into Chicago's schools.
Debt is an increasing expense because of the interest that must be repaid on top of the capital borrowed. Interest is best thought of as the cost to borrow money and becomes especially important when referring to the amounts owed on credit cards that are not paid off on a monthly basis. However, it is important for people to save and invest even while they have some accumulated debt. Knowing the difference between good and bad debt can help.
Mutual funds are very popular investments, particularly for small investors. Simply put, a mutual fund pools the money of many small investors and uses it to purchase large diversified baskets of stocks, bonds and other investments. This strategy provides the kind of diversification that would be difficult for investors to duplicate on their own without hundreds of thousands of dollars to work with.
Before investing in securities, it is generally a good idea to do a thorough amount of research on those investments. You need a sufficient amount of information about prospective investments before you can make a wise decision about whether to invest. Learning where to look for the information you need is a valuable skill to have as an investor.
At first look, a rent-to-own agreement seems like the perfect solution for someone who wants to buy a house but can't afford to do so at the time. It allows the individual to stay on the property until he's ready to buy. But it does come with a number of risks to consider before signing on the dotted line.
You can begin trading in the foreign currency exchange market for as little as $100. Most brokers allow you to use margin to leverage your account 50 times. So a 2 percent margin account allows you to trade $50,000 worth of currencies with only $1,000, representing a leverage of 50 times. Starting with such a low capital level, however, is not a recipe for success, as the forex market is extremely volatile.
Unlike enterprise liquidation that often leaves shareholders empty-handed after meeting creditor claims, mutual fund liquidation may retain most of the investor capital following necessary expenses. Mutual funds are subject to certain current liabilities at most, as they don't borrow long term to finance fund investments. Mutual funds may lose value over time due to poor investment management, and their asset base can further shrink as the result of investor defection. Therefore, at some point, there may be a consensus of fund managers and investors that a fund closing down may best serve the interest of both sides.
Although the government regulates some practices related to mutual funds, it does not make mutual fund recommendations. However, you can find some government publications that offer objective information about mutual funds, helping you analyze their functions, risks and rewards.
Figuring out how the federal income tax works is simple once you understand the basic components that determine how your taxable income is calculated. There are many steps, but ultimately, your taxable income is the final amount subject to the income tax rates and determines how much you have to pay.
On one hand, mutual funds take some of the complexity out of investing. You get a product that saves you time and energy by covering a wider swath of investments than you can with an individual holding. At the same time, so many mutual funds exist -- investing in every possible economic niche, region of the world and financial strategy -- it might make Warren Buffet's head spin. If you are looking at mutual fund investing, consider some key questions before writing a check.
The term FOREX fund applies to several different types of investment vehicles: mutual funds, hedge funds and exchange-traded funds. They all have in common an investment strategy that attempts to capitalize on changes in the exchange rates of currencies. Foreign currencies are traded in pairs, such as the Euro/U.S. Dollar currency pair, and in baskets, a collection of currency pairs all sharing one currency in common, such as Dollar vs. Yen or Dollar vs. Euro.
When it comes to investing, "conservative" can describe any number of investments, or investors. That's because people relate the word to something that makes them feel relatively safe. Some people feel safe on a roller coaster. Others fear for their lives when they experience the dips, dives and unexpected turns. Investors experience mutual funds the same way. When the fund is earning money, they feel safe. When it drops in value, however, they can't sleep. But losing value does not necessarily mean the fund is not a good mutual fund. Mutual funds for conservative investors do not escape market volatility.
Investing in stocks is the generally accepted way to grow a portfolio over the long term. While this is a common treatise in the investment world, it is not the only option you have. But have a basic understanding of the stock market will help you weigh whether stocks should be the focus of your portfolio.
Investors sell mutual fund investments to realize a gain or to establish a loss. How to determine your profit or loss depends on several factors. Rely on accurate record keeping to establish your cost basis in the mutual fund. Money market funds, a kind of mutual fund, don't usually register gains or losses. A money market mutual fund allows investors to buy and sell shares at $1.
When people are looking for conservative investments, they mean investments that have predictable returns and little variance in daily price movements. Certificates of Deposit and Treasury bills are among the most conservative of investments, but many people are comfortable accepting a little more risk in pursuit of a higher return. Stocks and mutual funds are very popular, even with conservative investors.
Investing in mutual funds can be an excellent way to meet both your short-term and your long-term goals, but it pays to have an exit strategy ready when you buy into a fund. Simply buying a particular fund and holding it is not always the wisest strategy. Over time, the factors that caused you to buy the fund in the first place may no longer be relevant, and that could mean it is time to sell and use the money elsewhere.
Investors use a statistical regression analysis to calculate the beta coefficient or beta of a mutual fund portfolio. They then use beta as a measure of risk and volatility. Investors also use the beta coefficient as a performance measure, comparing the mutual fund's performance against the performance of either the stock market as a whole, or an index such as the S&P 500.
The days of retiring from a long-term career with a company and company pension plans have been mostly over since the late 1980s. Today's employees and their employers rely on retirement and investment options that can travel with them from company to company and that are low cost to manage, such as 401ks and individual retirement accounts (IRAs). Many of these retirement funds and other investment accounts, like college savings, are held in mutual funds. These funds allow investors to achieve many of the benefits of investing in stocks and bonds without many of the liabilities.
An angel investment group is the only type of group that can begin a sidecar fund, which is an investment fund that makes the group's portfolios look better. Most of the time, an angel investment group is set up by a nonprofit organization, but one can also be formed by local governments. The group of angel investors determine what different business offers they will get involved with and they use a sidecar fund for the investment.
The term 'duration' in the mutual-fund world applies to bond mutual funds and the make-up of an individual fund's portfolio. The reported duration of a bond mutual fund can be used to determine the effect of future interest rate changes on the fund's value. Comparing the duration of different funds helps an investor to select bond funds for investment.
Alternative investments -- investments falling outside of the traditional asset classes of stocks, bonds and money market instruments -- include a broad range of investment vehicles. Some alternative assets, such as an investor's fine art collection, don't trade in a public securities market. Many alternative investments, such as commodities, currencies, options and derivatives, trade in the public markets. Mutual funds offer professional management, diversification and liquidity to the investor seeking exposure to alternative assets.
Mutual funds constantly issue and redeem shares based on investor money inflows and outflows. When investors purchase a mutual fund, they purchase newly issued mutual fund shares and the fund buys stocks or bonds for its portfolio with the money it receives. When investors sell a mutual fund, they redeem their shares in it and the fund sells stocks or bonds from its portfolio to meet the redemption. Most of the time, purchases and redemption are fairly stable and predictable and the fund can meet them by keeping a small percentage of assets in cash at all times. But every…
One of the primary considerations in investing is diversification, or to quote the old adage, don't put all of your eggs in one basket. Most individual investors do not have sufficient capital to adequately diversify their bond portfolio by purchasing individual bonds. Adequate diversification can be achieved by investing in bond mutual funds. The pooled assets held in these funds, as well as all tax ramifications, are divided amongst the fund's shareholders.
Offering professional management, and better diversification than stocks, mutual funds are attractive to many retail investors. Stock mutual funds are particularly popular for individual investors looking for long-term returns from equity appreciation. While picking winning stocks is not an easy task, picking the right mutual funds can also be challenging. Understanding the different aspects of mutual funds is key to selecting the best mutual funds to fit your own investment objectives.
The interactions you have with your mutual fund company will be primarily with the fund company's transfer agent. The Investment Company Act of 1940 governs the function and organization of mutual fund companies. A fund's transfer agent will handle the requirements of the Act concerning the notification and protection of customer investments.
It's usually not possible for you to keep every investment you own inside an Individual Retirement Account. If for no other reason, at some point during the year, you'll hit your IRS-mandated annual IRA contribution limit, forcing you to put your money in other places, which may not provide the power of tax-deferred growth. Before buying mutual fund shares in taxable accounts, consider several key tax-related points.
Mutual funds have increased in popularity during the last decade for those who wish to save for financial goals, such as retirement. Like all investment options, mutual funds have advantages and disadvantages, as well as risks. Investors are wise to amass all the information they can before committing to mutual funds or any other investment.
Credit card companies and banks often offer consumers products that come with added perks and bonuses. One of the most common extras is reward points. While the value and uses of these points from vary from bank to bank and across credit card companies some, such as the CIBC Aero Classic Visa, offer some valuable potential benefits for the savvy consumer. Best of all, accumulating and redeeming these points is quick and easy.
If you need a loan but don't have a house, you may look at your mutual funds as collateral. The type of mutual fund account you own and the tax structure it holds will determine whether you can actually borrow against it. Understanding mutual fund loan regulations helps prevent accidental tax or fee liabilities.
Choosing the best mutual fund for a recession is like walking into an airport and asking which flight is the best. The answer will depend primarily on where you want to go. During a recession, you may want to purchase a mutual fund. You may need to sell. Or you're not buying or selling but you do need income. In each case, the best mutual fund is quite different.
Stock mutual funds, the most popular among mutual funds, have different kinds and variations depending on fund history, management style and investment strategy. The performance of stock mutual funds thus is likely not all the same, and past returns may not be indications for a similar future performance. But when selecting stock mutual funds, investors do rely on historical performance for comparisons. The performance of stock mutual funds can be compared in many ways: over different time period, against market benchmarks, among peer groups and by certain market conditions.
As of the second quarter of 2010, mutual funds hold about $21.44 trillion of the world's money, according to the Investment Company Institute. Before you contribute a relatively tiny slice of that pie, you should consider several factors about mutual fund investing. Ultimately, your goals and investing style dictate the types of funds you'll get into.
Mutual funds are popular investment vehicles that offer investors access to diversified portfolios and professional management. With over 7,500 different funds available, they can be classified in many different ways. The Investment Company Institute divides the universe of mutual funds into several broad types when it reports on mutual fund industry trends.
Because a small investor doesn't have the financial power to purchase large numbers of investments, mutual funds allow people to pool dollars together to buy shares in many stocks or bonds. Reviewing which mutual funds are worthwhile can be problematic. Funds have managers, track records, investments, fee structures and stated goals that all need to be compared. Rather than requesting information individually from every fund, there are now tools available that make finding and comparing mutual funds easier.
A mutual fund is an investment instrument that controls a diversified portfolio of stocks, bonds or other securities--depending on the type of fund. Diversification offers investors a higher degree of security, but mutual funds still carry a certain degree of risk. The amount of risk varies widely among different types of funds.
Toiling away in factories, laboratories and manufacturing plants, engineers contribute to the production of new items keeping the country running. Colleges across America offer engineering studies departments where students can choose one of more than ten engineering specialties. Specialties dictate not just the engineer's career path, but also the expected salary.
Investing and banking scandals have justly alarmed investors, who now worry about the financial well-being of any company they entrust with their hard-earned money. Investors have a right to be concerned about the stocks their fund manager invests in, given the fact that major blue chip companies like Bear Stearns and Enron have imploded. Fortunately, the government heavily regulates the mutual fund industry, limiting investors' risk, and protecting them from fund company bankruptcy.
Mutual fund investing is a way for any investor to build and manage a diversified portfolio. With so many mutual funds from which to choose, the do-it-yourself investor willing to do the necessary research and planning can select from diverse funds invested in commodities such as gold and oil or in more traditional investments such as real estate, stocks and bonds. The automatic rebalancing of your portfolio is a convenient way to maintain your investments allocated in the manner you have chosen over time. Without automatic rebalancing you must manually update your portfolio.
The ratio of share price to net asset value per share is used by investors when evaluating the share price of a closed-end fund versus the overall value of the fund. Closed-end funds do not allow new investors to buy into the fund at any given time but instead issue a fixed number of shares for initial sale to investors. Those shares then often trade on a stock exchange, where fluctuations in the daily price of the fund can deviate from the net asset value. Investors use the resulting ratio to determine if a fund is overvalued or undervalued compared…
Mutual funds combine money from many different investors and use that money to buy a widely diversified portfolio of stocks, bonds and fixed income investments. Maximizing the return you get on the mutual funds you buy means your money accumulates more quickly, helping you build a significant nest egg you can tap for retirement and other long-term goals.
Mutual fund prices are not subject to the same level of fluctuation as other kinds of investments because the funds are only priced once a day. If you check the balance of a mutual fund online, the information you see pertains to the share price as of the previous business day's close. Fund prices are based on the value of the underlying stocks, bonds and other commodities, and fund prices are set after the stock market closes.
Personal investors always want to be certain their money is invested wisely, and finding a high-quality large-cap value mutual fund can be challenging. However, many online rating agencies can provide useful information to help personal investors narrow the choices from thousands of selections to just a handful in the matter of a few keystrokes and mouse-clicks.
People can buy or sell shares in mutual funds on a daily basis with the exception of weekends, federal holidays and any other days that the stock market does not open for business. Shareholders often have to pay state and federal taxes as well as fees to their broker and the mutual fund company when they sell shares.
Mutual funds can fail because of poor fund investment performance, but, in theory, they do not file for bankruptcy. A bankruptcy filing is often related to an entity's inability to meet its debt obligations. As a common investment vehicle for the general investing public, mutual funds are strictly regulated both in fund creation and ongoing management to protect the financial interests of fund shareholders. The law does not permit mutual funds to use debt to finance investment activities. Because mutual funds have no creditors, the possibility of filing for a traditional bankruptcy does not pertain to mutual funds.
Sometimes it seems like gold is the best investment out there. Other times, it may just be that gold makes for a nice diversification asset among a larger portfolio. Whatever the reason, an investor may want to take a look at a gold mutual fund. However, most mutual funds don't just buy up gold bullion. Understanding what they do is the difference between a smart investment and a shaky one.
Option strategies can be complex. Some strategies are high in risk, while other strategies are used to reduce risk. Mutual funds that employ options strategies typically use them to reduce risk and create income for their investors. Used correctly, options offer a way to have more control over your investments and can help them stay afloat even under the worst market conditions.
A primary rule any prudent investor should heed is portfolio diversification. If all your money is tied up in one or two stocks, your fate is linked directly to the performance of one or two companies. But how does an investor with a small amount of money spread her wealth over a large number of stocks? Mutual funds offer a perfect solution to this dilemma. A mutual fund is a basket of stocks managed by a professional money manager. Mutual fund investors own shares in a fund, which means they own a small share in a large, well-diversified portfolio of…
The Dodge & Cox Balanced Fund is one of five mutual funds from the Dodge & Cox Funds family. "Kiplinger" magazine states the Dodge & Cox Funds are known for their long-term investment focus. The Dodge & Cox Balanced Fund holds a combination of stocks and fixed-income investments to meet he fund's objectives of capital preservation, regular income and potential growth of capital and income.
A lender will qualify a borrower for a home loan based on her credit score and the ability to make a down payment. For different loan programs, the requirements for credit and down payment will vary. Your credit, down payment amount, interest rate, re-payment term and loan amount will determine your monthly mortgage payment.
Like many people, you may consider it important not to have all your investment eggs in one basket. Mutual funds offer you an opportunity to diversify your portfolio even if you only have a relatively small amount of money to get started. A mutual fund is a managed investment account. Each fund owns a basket of stocks, bonds or other securities that are chosen and managed by a professional investment manager. Fund companies sell shares to investors who participate in ownership of all securities owned by the fund.
Mutual fund policies directly impact shareholders, because policies dictate the fee structure, strategy and overall management of the fund. The Securities and Exchange Commission (SEC) requires mutual funds to disclose information about fund policies in prospectuses provided to shareholders prior to fund purchases. Most mutual funds have a board of directors that makes policy decisions. In many instances, shareholders have the opportunity to participate in the decision-making process through proxy voting.
Capital World Growth and Income Fund is a mutual fund distributed by The American Funds--a division of The Capital Group of Companies. The American Funds mutual fund family is a highly regarded, long-standing group of mutual funds.
A Certified Funds Specialist, or CFS, designation can offer a lot of advantages for many working in the financial services industry. Training provides a firmer foundation of understanding for how mutual funds work and how they interact with other investments in your client's portfolio. Additionally, the designation adds prestige and lets your clients know they can be confident in your recommendations.
401k plans are employer-sponsored retirement plans. These plans invest in funds the employer chooses. As an employee, you can choose which funds to invest in. Normally, these funds consist of equity mutual funds. But you may be able to get the benefit of a bank CD inside of your 401k plan.
Exchanges between mutual funds can have significant tax ramifications in some cases. Failure to take the rules for how these transactions are taxed into account can lead to a nasty surprise come tax time. Knowing which funds you can exchange without tax consequences can drastically reduce your tax bill and make managing your finances easier.
Mutual funds may be easily returned to cash, as they're liquid marketable securities. They may be closed-end securities that trade on the stock exchange. A closed-end fund has a market price and a net asset value. Open-ended mutual funds don't trade on a securities exchange. According to "Private Wealth Management: The Complete Reference for the Personal Financial Planner" (2009), marketable securities should possess relatively stable price performance.
After a difficult 2008, marked by a massive market retreat when most mutual funds posted large losses and market leaders managed to distinguish themselves by just merely controlling losses, 2009 marked a major return for mutual fund investment. Some of the top-performing mutual funds of 2009 reported gains of more than 100 percent and the market generally appeared much healthier, with a few mutual funds leading the pack.
When you purchase a mutual fund, your investment is subject to certain costs. These costs include an expense ratio, and may also include a front-end sales charge, or load, which you pay to finance the salesperson's commission. They may also include a back-end sales charge if you sell your fund, a "level load" of a higher expense ratio each year and different fees for early redemption. To help standardize the fee structures and streamline the sales and billing process, many companies develop a variety of mutual fund share classes, each with their own cost structures.
Mutual funds offer you the opportunity to diversify your investment dollars across a broad range of stocks and bonds. While you can buy mutual funds via a broker, either working with a specialist through a brokerage or using an online broker account, you do not have to use a broker for purchases. Mutual fund companies allow you to purchase funds directly from them, an approach that has financial benefits.
People who own shares in mutual funds can request to sell or redeem their shares at any time. Mutual fund sales occur after the closing of the New York Stock Exchange, Monday through Friday, throughout the year with the exception of federal holidays. Shareholders can instruct their investment broker or, in some instances, their online brokerage account, to sell shares on a monthly basis.
Mutual funds are investment vehicles that allow individuals to participate in financial markets without a large amount of capital or time commitment. Investments are pooled and managed by professionals, who charge a small fee for these services. Before investing in a mutual fund, investors can check the track record of the fund, its managers and the fund's investment strategy. Most mutual funds -- though not all -- can lose value.
Mutual funds are a common investment tool in the United States. They have become increasingly popular in retirement planning in recent years. When planning for retirement, it is important to understand the exact function of common mutual funds in order to choose the best investment vehicle for your own individual needs.
There may be stocks, bonds, mutual funds or real estate in your investment portfolio. Your investment objectives may be retirement, education or emergency expenses. Mutual funds often use benchmarks, or standards, among other tools to measure their performance. You can use the same techniques to measure the performance of your investments and see if you are meeting your objectives.
Stock mutual funds are gateways into financial markets. To buy in, you purchase stock fund shares directly from fund companies, stockbrokers or insurers. These purchases may be made as part of a variable annuity, 401(k), IRA or regular taxable accounts.
Mutual fund families contain different funds offered by a particular investment company or a division of an investment company. Generally, shareholders can move money between funds in the same fund family without having to pay commissions, known as loads, for buying and selling shares. People who buy funds in a different fund family and choose A-class shares pay a load fee of between 3 and 6 percent at the time of purchase. People who buy B-class shares pay a fee of up to 5 percent if they sell a fund within seven years of the purchase date. People who buy…
Starting a Forex fund can provide you with a way to come up with the money necessary to make large profits in the foreign exchange market. This market has a vast amount of potential and by raising a large amount of money, you can amplify your profits. The process of starting a Forex fund will require you to know how to trade successfully and how to manage money. Knowing the right people can help the process as well.
Mutual fund companies are required to provide a legal document, called a prospectus, to investors who have purchased shares in their mutual funds. The U.S. Securities and Exchange Commission (SEC) encourages investors to request and read the fund's prospectus prior to making a decision to invest in the fund. A prospectus may appear to be long, tedious reading, but it contains important information and should not be skimmed over lightly. It helps if you know what information you should look for.
Mutual funds are a commonly used investment tool by individuals throughout the world. They are a type of investment company that pools money from a lot of different investors and then invests this money into securities. Mutual funds can be categorized in hundreds of ways, but the general categorization has been by the type of security the fund invests in. The general categorizations by security are money market funds, bond funds and stock funds.
Investors buy mutual funds in two different ways: directly from the fund or through an intermediary. The manner in which you bought the shares determines the way you must sell the shares. If you bought funds directly, you can place a sell order over the phone or on the mutual fund company's website. If you bought mutual funds through a broker or a 401(k) custodian, you must communicate your sell order through them.
It's never too early to teach kids about saving and investing. Some financial institutions offers special accounts for children, which go above and beyond the standard Uniform Transfer/Gift to Minors or Coverdell educational accounts that parents often open. These mutual fund or savings accounts may include financial educational components, featuring age-appropriate materials.
Compared to brokering stock trades, selling mutual funds to investors on behalf of mutual fund companies is not as simple as executing trade orders for clients. Shares of mutual fund are not traded on stock exchanges and thus investing in mutual funds is not as standard and efficient. Moreover, mutual fund companies charge investors sales commissions to compensate for brokers' marketing efforts, and investors sometimes balk at those high fees. Because mutual funds as an investment product have certain advantages over stocks, brokers do offer mutual funds to meet clients' needs. But because of the drawbacks, it may not be…
A mutual fund prospectus explains how a fund operates, what its performance has been over several years and how much you will pay to purchase and hold your shares. Federal regulations require each fund to have a prospectus. Before you invest you should review this document, or a shorter version called a summary prospectus, so you understand the fund's investment objectives. You can access mutual fund prospectuses at the websites of mutual fund companies.
A mutual fund is a pool of money from many investors that is used to invest in one portfolio of securities for the benefit of all the investors in the fund. Mutual fund investors buy shares in the mutual fund. Each share represents a piece of every investment made by the money managers that oversee the mutual fund. Although mutual funds allow you to invest in many sectors of the economy at once, mutual funds do have limitations worth considering before you invest.
Mutual funds are large pools of money managed by experienced professionals. The fund charges a fixed percentage fee for the services of these professionals. Whether you can deduct these fees depends on how your earnings and dividends from the mutual fund are calculated and reported. This in turn largely depends on whether the mutual fund is of a public or nonpublic type.
Mutual funds are a type of investment that many investors and experts consider relatively safe. A mutual fund is an investment vehicle in which investors can buy shares of ownership in a group of assets like stocks or bonds. The value of the mutual fund shares is based on the value of the assets that make up the fund. While they are safer than investing in an individual stock, risks still exist and careful considerations must be made. These funds provide diversification and are regulated closely by the Securities & Exchange Commission.
Mutual funds are a type of investment that investors of any experience level can use to grow their portfolios. When you start investing, creating the perfect portfolio of mutual funds can provide you with a way to diversify your account and bring in consistent returns. When choosing the funds for your portfolio, it is important to look at the type of assets that the funds invest in as well as the volatility that is associated with the investment.
Mutual funds are investment vehicles where many investors pool their money and use it to buy different investments. The investors pay a fund manager to research investments and to buy stocks with their money, using a guideline set by the objective for the fund. Much of the return on investment that the fund generates depends upon the manager of the mutual fund. Funds can vary considerably in their investment returns so it is extremely important to compare performance between different mutual funds.
Mutual funds carry no government insurance. Some funds invest in securities holding very little risk for the investor because of government backing. The Federal Deposit Insurance Corp. (FDIC) backs only bank savings, checking, certificates of deposit and money market accounts. The FDIC does not cover stocks and bonds, even if held through a bank brokerage.
Mutual funds are not insured by any U.S. government branch or agency. Mutual funds are not considered a deposit account, which is the type the Federal Deposit Insurance Corporation covers. Mutual funds do not offer fixed rates of return. They are considered a risky endeavor, and you invest at your own risk. You cannot insure your funds against the possibility of the investment failing. However, your money is insured against failing banks and brokerage companies.
The simplest and most common valuation of a mutual fund is its price, also known as net asset value, or NAV. The price factors in to a number of other measurements that aid in determining the overall value of the fund. By knowing the role price plays in these calculations, you can more fully understand your investment.
To successfully invest in mutual funds, you need to look for funds that are better managed than others. You should be only give your money to a fund manager who can consistently outperform his benchmarks.
A mutual fund pools investment funds from many investors and invests in a portfolio made up of a variety of securities on behalf of the investors. According to the Securities and Exchange Commission (SEC), mutual fund companies commonly invest in a combination of stocks, money markets and bonds. Ownership and returns on all these assets depend on the size of an investor's stake in the mutual fund.
When developing a portfolio of mutual fund investments, your first consideration should be where to open an account and how to purchase your shares. You can buy mutual funds through different types of brokers for varying transaction fees, or directly from mutual fund firms with few if any transaction fees.
When an investor redeems shares of a mutual fund, the fund company handles the redemption directly. Mutual fund companies are required to base the redemption on the net asset value of the fund's shares. The amount an investor receives is dependent on the date of the redemption request and any restrictions the fund company places on share redemptions.
Mutual fund investing is one of the most common forms of investment for small-time investors, since it scales to the amount of involvement an investor wants to have. If an investor wants to invest in a mutual fund and let the money grow, funds allow it. If an investor wants to directly have a hand in how his money will be invested in the fund, other funds allow this. Because there are so many types of mutual funds, their risks can vary; the risks depend on the general portfolio that the fund endorses.
The Investment Company Fact Book has thousands of mutual funds on record for sale on United States markets as well as international exchanges. Many mutual funds have similar names and share classes. The name often states the risk class of the fund, for example "growth and income." The share class tells how investors can purchase the fund: with a sales charge paid on buying, paid on selling or no sales charge (no load). Because of the diversity with similar names, every mutual fund is given a unique symbol it trades under, which can be found through quick research.
Investing in mutual funds is generally considered to be one of the best ways to build your portfolio. Even though this investment is popular, there are some potential problems that you will have to deal with as an investor. You need to get used to the idea of dealing with tax inefficiency, lack of control and fees if you want to invest in mutual funds.
Mutual funds give investors a way to diversify their portfolios without making a large cash investment upfront. They also offer professional money management for average investors who may not need the full attention of a dedicated asset manager, but still want to ensure that their savings are in good hands.
Mutual funds are an investment of stocks and bonds placed in one commonly traded portfolio among investors of similar investment objectives. As an investor buys a mutual fund, shares are created, adding to the entire dollar capitalization available to the mutual fund manager. When the investor liquidates shares, also called redemption, the shares are sold and eliminated from the fund's capital resources. Redeeming shares and withdrawing your money can be done at any time, though you should understand the fees associated with the redemption.
Mutual funds are often cited by experts as the premier investment choice in the market. While this type of investment can work to your advantage, not all mutual funds will live up to your expectations. By looking at factors such as the expense ratio, annual returns and the comparable benchmarks, you can get a better idea of what to expect from a fund.
Mutual funds are investment pools that combine the financial resources of individuals, companies and institutions. The pooled funds invested in a portfolio of assets, which may include a diverse range of financial instruments, based on the investment objective of the fund. Mutual funds are managed by professional money managers and are often sold by brokers. To compensate these service providers, mutual funds may charge a wide range of fees.
Certificates of deposit and mutual funds are two types of investment instruments. Which investment is a better option depends on a number of factors that make up the investor's goals. These include tolerance to risk, time horizon and need for liquidity. A 401k is a tax-deferred, employer-sponsored retirement plan that may be used to hold these financial instruments.
Mutual funds make sense for the average investor. However, the sheer number of funds and fund sectors can be overwhelming for both novice and long-time investors. Take into account the tax consequences of certain funds before making investment decisions. Those looking into mutual funds need good ideas about where to put their hard-earned money.
A mutual fund is simply a mutual investing arrangement where many investors combine their money into an investment pool. They then collectively hire a money manager to invest the money on their behalf, typically in stocks, bonds, cash equivalents such as money markets, treasuries and, occasionally, options. Mutual funds provide lay investors with access to professional investment expertise for much less than it would cost to hire an investment manager individually. Mutual funds also provide instant diversification as investors can invest in hundreds, or even thousands of securities with a single transaction.
Mutual funds work by pooling the funds of many small investors and using those funds to purchase a diversified basket of stocks, bonds or fixed-income securities. But with thousands of mutual funds to choose from, it can be difficult to find the right ones. Taking advantage of the available value-adding tools and resources can make the search for the perfect mutual fund easier.
Mutual funds are an increasingly popular way to invest money. They represent an alternative to investing directly in the stock market by pooling stocks into a large fund that investors buy into. A professional fund manager makes the buying and selling decisions, and all investors pay fees for the management and share in the profits or losses.
Mutual funds are financial intermediaries that pool financial resources from individuals, companies and institutions and use the collective resources to invest in diversified portfolios of assets. Mutual funds are professionally managed, with a fund manager that trades the assets and liabilities in the portfolio. In the United States, most mutual funds operate under guidelines of the Investment Company Act of 1940.
Mutual funds offer diversification of investment dollars with less risk than buying individual stocks or bonds. When you buy into a mutual fund, you purchase a portion of a total portfolio of stocks, bonds or a mix of both, and if any investment in the portfolio loses money, your losses are far less than they would be if that investment were your only holding.
A mutual fund is a pool of money contributed by many investors which is managed by a professional money manager. The money manager invests the funds on the investors' behalf, typically in stocks, bonds, cash equivalents such as money markets, or some combination of the above. Most funds have specific investment objectives, such as safety of capital, aggressive growth or to provide a current income for shareholders. Typically, mutual funds will also focus on specific areas of investment markets, such as small-cap stocks, large-cap stocks, foreign stocks or bonds. Other funds, called "asset allocation funds," balance their holdings across two…
A mutual fund is simply a pool of money into which a number of investors contribute. They hire a professional money manager to invest on their behalf. The fund manager typically invests in stocks, bonds, cash equivalents such as money markets, and occasionally in options and real estate investment trusts (REITs) according to the fund's investment objectives. Investors can purchase mutual funds within tax-advantaged retirement accounts, or hold them outside of these accounts. Each method has advantages and disadvantages.
If you hold mutual funds inside a retirement account, such as an IRA or 401k, you don't have to worry about the capital gains tax -- your withdrawals are simply taxed as income, and withdrawals from Roth IRAs and Roth 401ks are tax-free. If you hold your funds in a taxable account, though, taxable gains become a factor. As of 2010, short-term capital gains are taxed at ordinary income rates, and the long-term tax on capital gains was 15 percent, and scheduled to go to 20 percent unless Congress acts to extend the tax cuts enacted in the Economic Growth…
Mutual funds are a viable investment option for many investors seeking to grow assets over time without extensive research and monitoring of daily investment news. With billions of dollars invested in thousands of fund options, millions are convinced of the strong benefits of mutual funds. As with all things, there are also negatives to consider.
A debt mutual fund, also called a bond fund, is a mutual fund portfolio completely comprised of debt securities, which pay interest and principal at either fixed or variable rates.
The stocks of strong, well-known companies with a track record of dividends and earnings earn the sobriquet "blue chip." Investors who want to purchase stock in such companies may find the easiest way to do so is through a mutual fund. Many top mutual funds companies offer blue-chip stock funds, where investors can buy shares starting with relatively modest investments of a few thousand dollars and continue contributions over the long term. Review a fund's prospectus before investing.
Mutual funds are a type of investment that diversifies stock holdings across a wide body of stock types. When investors place funds in a mutual fund, the managers of that fund distribute the money and buy various stocks for those investors. Mutual funds always have a particular focus, such as large cap funds, overseas funds, or large growth funds. This helps investors choose a fund that fits their particular investment plans. However, there are several problems with mutual funds that investors should be aware of.
A mutual fund is an investment company that pools investor resources to create financial portfolios of stocks and bonds. The firm then manages these portfolios for investors buying and selling stock to increase the value of the fund, while allowing investors to continue buying into the fund to increase its purchasing power. These funds carry a great amount of risk and can be confusing for investors just starting out in the nebulous world of stock trading.
The stock market crash of 1929 and the subsequent Great Depression led to a series of regulatory measures aimed at protecting consumers against improper investment practices. Mutual funds today must register with the Securities and Exchange Commission (SEC), according to the Securities Exchange Act of 1934. Funds must also meet proper record-keeping, reporting and custodial standards, based on the regulations in the Investment Advisers Act of 1940. Investors concerned about impropriety and fraud can confirm the registration of a mutual fund.
A mutual fund's net asset value (NAV) is the price of just one of its shares. NAV is calculated by dividing total assets by total outstanding shares. Mutual funds calculate their net asset value daily, usually after trading ends.
Publicly traded companies often return excess profits to shareholders in the form of a dividend. Since mutual funds frequently hold stocks, they also receive dividends from the companies in their portfolio. In turn, mutual funds either send dividend checks to shareholders or automatically reinvest the dividend in mutual fund shares on their behalf. Mutual funds also occasionally return embedded capital gains to the shareholder as well. These are sometimes called taxable distributions. The Internal Revenue Service considers these distributions to be a type of dividend.
A mutual fund is legally referred to as an open-end company, according to the U.S. Securities and Exchange Commission (SEC). Mutual fund companies pool money from a number of individual and institutional investors, then use those funds to purchase securities, giving each investor a pro rata share of ownership in all of the securities held by the fund. The types of investments the mutual fund is permitted to invest in determines the classification of the mutual fund.
Mutual fund tools enable you to conduct your own investment research. These tools will show you which mutual funds are the best performers. You can also get information on the fund's risks and fees.
Mutual funds can be excellent vehicles for saving and investing; but with thousands of mutual funds to choose from, it is hard to find the right one for your needs. As an investor, you have access to a number of resources to help you whittle down that list of possible mutual fund investments to a more manageable size.
Mutual fund tracking software allows you to monitor your mutual fund's performance. Another benefit this software offers is that it can produce capital gains reports for tax purposes. As a result, this saves you time from having to calculate capital gains.
A mutual fund is a securities investment that holds hundreds, if not thousands, of stocks and bonds. Funds are managed by a head investment strategist using a team of analysts and economists to maximize the returns to each each investor who buys into the fund. Funds are categorized by risk and investment objectives. While you don't want to obsess about the day-to-day fluctuations, monitoring your mutual funds helps you evaluate performance over time.
Mutual funds invest in stocks and bonds, making them subject to the rises and falls of the stock market. While the average investor is not always personally tracking the phases of mutual funds, understanding what institutional investors are making investment decisions helps retail investors make better buy and sell decisions.
Mutual funds help investors achieve diversification. Buying an assortment of quality investments instead of just one spreads risk. Professional management of a mutual fund adds value to your investment. Two basic kinds exist.
Mutual funds are an investment tool that allows individuals to invest in a wide variety of securities under the blanket of a single fund. Although investing in any security poses potential risks, investing in mutual funds spreads the possibility of risk through the diversification of securities.
It is a simple process to cash in a regular mutual fund account. You can call up the fund company and request they sell all of your shares. The fund will send you a check or wire the money to your account in a couple of days. Most mutual fund closing transactions do not have any costs. You will receive the full share price quoted on the day you request the sale of your shares. Certain funds may charge a fee or penalty to close out an account.
Mutual funds provide one way for the average person to invest in the stock market. Many mutual funds have low fees and provide a diversified portfolio of stocks. But mutual funds also have some disadvantages investors should understand.
A distributor of mutual fund products is the principal underwriter of the mutual funds. This distributor can sell the fund's shares to the public. Many mutual fund companies have both the investment company and the distributor in one organization. The mutual fund companies either choose a no-load strategy and sell the funds themselves, or a loaded strategy that uses outside dealers. If the performance of the mutual fund struggles, the funds may see strong outflows of cash and become insolvent.
Natural resources are often found as investment tools in mutual funds. You'll find a variety of funds using natural resources, including hard asset funds, basic material funds, energy funds and basic natural resource funds. Oil and other resources also are popular investments in diversified funds. According to SmartMoney, natural resource funds alone have more than $29 billion in assets.
Initial Public Offerings (IPOs) have always injected excitement into the stock markets with the promise they offer. Everyone hears about the IPO that is bought at $15 and then sold at $76 two months later. While a hot IPO can be extremely profitable, IPOs overall actually under-perform the broad market on average. For this reason, investors who want to capture the profits of a hot IPO should consider investing in Mutual Funds that hold IPOs as part of the fund's portfolio.
Mutual funds are available to be purchased by the public and are one option for personal investors. The dollar value of the fund purchased changes daily with the rise and fall of the investments held by the fund. While mutual fund values do fluctuate, there are a few benefits associated with purchasing them.
Evaluating the performance of a mutual fund starts with understanding how the investment company is putting the pooled assets of you and other investors to work. The starting point for mutual-fund investors is the fund's prospectus. The prospectus contains information on the fund's strategy and investment purpose, such as providing income or both growth and income, or preserving capital. The cost and fees to invest in the fund also are detailed. In addition, up-to-date details about the specific investments in a mutual fund are available from independent research sources such as Morningstar. Mutual funds also issue annual and semi-annual reports…
Separately Managed Accounts, or SMAs, are a type of investment similar to a mutual fund where an investor pays a fund manager to administer the day-to-day operations of the account. Instead of buying into a fixed menu of holdings as with a traditional mutual funds, SMAs offer investors the opportunity to select sectors and strategies upon which to focus. Most SMAs require a minimum buy-in of $100,000, though according to the Wall Street Journal, they're best suited to investors with at least $1 million to invest for the long term.
Mutual funds hold a variety of securities that are actively managed by professionals. Though many mutual funds are available on the market, their performance can vary. By consistently checking mutual fund prices, you can determine the fund that is right for you. The price is represented as the net asset value (NAV). The NAV is calculated by dividing the total value of the mutual fund portfolio by the number of available shares of the fund.
Mutual funds are collections of stocks or bonds that are part of the "holdings" of the fund. When you buy into a mutual fund, you gain an ownership stake in these holdings and the profits that they produce. There are thousands of mutual funds on the market, some of which specialize in particular segments of the economy. Choosing the right mutual fund for you depends on your goals, your time line and your ability to tolerate risk. Research is key to making the best investment to fit your goals.
If you have money to invest, you have a variety of options, including stocks, bonds, commodities and real estate. You could also invest in mutual funds which pool together money received from many investors and invest on their behalf. There are a variety of mutual funds with a number of objectives. Since they are investing other people's money, and getting a fee in return, the Securities and Exchange Commission (SEC) requires mutual funds to make disclosures so that investors can make informed investment decisions.
No matter what your investments goals, mutual funds can be excellent vehicles. The beauty of a mutual fund is that it pools the funds of many small investors and uses that money to buy a large, diversified basket of stocks, bonds or fixed-income instruments. This results in a much more widely diversified portfolio than any single investor could get on their own. Building a solid portfolio of mutual funds takes time, but the results can be rewarding.
If you take stock in the old adage that dumb money ends up outperforming smart money in the long run, an index fund may be just the investment strategy you seek. Several investment firms offer mutual funds whose performance is directly tied to the overall Dow Jones Stock Index. Although fund managers invest in specific companies, Dow-based mutual funds tend to perform with the market, helping investors shield themselves from the volatility of single corporations or sectors of the economy.
Most investors have access to three different types of protection for their mutual fund investments, including insurance against investment firm failure, security guarantees in the case of fraudulent activity and litigation in the case of management negligence or malpractice. However, no protection exists against the normal risks of poor market returns.
Beginning investors occasionally mistake the term "SIP" as being a part of a mutual fund investment. It is not. SIP is a vehicle for investing that has been linked to mutual funds as a result of the offerings of past "high cost, low return" plans that use this structure to purchase interest into a separate interest that owns mutual fund shares.
Learning about mutual funds can be a very rewarding activity for students of all ages. Creating informative projects to help students learn is an excellent way to get them excited about saving and investing, and hopefully that excitement will continue throughout the rest of their lives.
Mutual funds are popular investment vehicles that allow individual as well as institutional investors the opportunity to gain professional management of their funds. Mutual funds offer investors the added advantage of diversification, since they invest funds in a variety of different stocks, bonds and other securities. Every mutual fund has a different investment priority, objective and management style. This information and much more is required to be disclosed to investors in the mutual fund company's prospectus.
Mutual fund investors should understand what the fund's net asset value--NAV--is and how it defines their mutual fund investments. All mutual fund share purchases and redemptions are based on the fund's NAV. A mutual fund investor will use the NAV value to determine the value of her own mutual fund account.
Mutual funds are popular investing choices for investors who like the allure of stocks but do not want to have to choose individual stocks. Mutual funds provide investors a mix of choices in stocks and bonds, allowing them to make investments based on their preferred method of growth. There are mutual funds for high-growth, high-risk investors, and others for low-risk, low-growth investors. Choosing a fund takes a little research to make your best choice.
Mutual fund distributions may be taxable or not. The tax status of a mutual fund account depends on the type of fund and how the fund is owned. Investors should be aware of the tax status of their mutual fund holdings. Also, the choices of taxable and non-taxable fund types should be used to maximize the after-tax return from a portfolio of funds.
A mutual fund is a collective investment scheme that is professionally managed to pool in money from investors for being invested in securities. Legally speaking, mutual funds are required to maintain a specific level of diversification for operating in the best interests of the people. They are operated and sponsored by various kinds of investment management companies. Investors need to put their money in a diversified mutual fund which seizes the available opportunities in the market across various sectors.
The purpose of mutual funds, like any for-profit enterprise, is to provide a product or service people need, for a fee. Mutual funds provide several important benefits to small investors: diversification, professional management, strategy, low cost, access to specific markets and ease of investing. Most importantly, they help investors achieve their financial objectives by making them money.
A mutual fund has a definition of an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Diversification attempts to eliminate unsystematic risk in the portfolio so that the positive performing investments neutralize the negative performing investments.
Investing in the stock market is a complex task. Many investors prefer to pick a single, diversified investment when buying into the stock market rather than picking individual stocks. Mutual funds allow investors to buy into a portfolio of stocks, bonds, and other investments managed by professional investment managers.
MIP is an acronym referring to a type of mutual fund investment structure called a "monthly income plan." In the most general terms, investors who obtain a consistent income from a mutual fund investment. This strategy is designed to help those needing income, primarily retirees, create a reasonable budget according to assets and earnings capabilities.
A mutual fund pools money from many investors into a single fund that buys and sells securities on behalf of these investors. Mutual funds need a way to divide claims to the fund's assets among the investors who own shares of the fund. When an investor buys shares in a mutual fund, her ownership is proportional to the number of shares she purchases. The value of each share is called the "net asset value" (NAV) of the fund.
The role of mutual funds is to provide a cost-effective means of investment, particularly helpful to small investors. Through mutual funds, small investors are given the opportunity to benefit from professionally managed portfolios. As implied in the term "mutual," the investment is shared by many investors. By sharing the financial burden, the joint investors can buy stocks, bonds and other assets.
Whether you are saving for retirement, funding a college fund for your children, or just putting money aside for a rainy day, mutual funds can provide long-term growth, current income and financial stability. Your needs will dictate the type of fund you choose. When choosing a mutual fund it is important to look at not only the fund's long-term performance but its annual expenses and costs.
Rebalancing mutual-fund allocations in your investment portfolio refers to the process of selling some of the assets to buy more of other assets in an effort to maintain your original diversification goals. It is important to rebalance because when one fund does exceptionally well, the portfolio becomes overweighted with the one fund and changes the risk status of the entire portfolio. Industry experts debate how often you should rebalance, but the Securities and Exchange Commission suggests doing it every six months or a year or else whenever your portfolio has become unbalanced because of changes in your mutual funds' values.
Mutual funds offer investors professional management and securities diversification. Mutual funds, like many securities vehicles, best favor the long-term investor. Time in the market works better than timing the market, or investing only during certain market trends. Banks and insurance companies sell mutual funds to individual investors although these investments lack FDIC insurance. Possible capital losses or gains can occur when investing in securities, including mutual funds, so it's a good idea to know the rules for them.
Mutual funds can be a good addition to any retirement investment portfolio, but there are many different types of funds to choose from and they are not a "one size fits all" type of investment. If you are looking to invest in a mutual fund, it's important to do your homework on the funds available, figure out what your specific goals are with your investment, and make an educated decision based on those factors.
The Capital World Growth and Income Fund (CWGIX) is, as its name suggests, a growth-and-income fund. According to the American Funds website, the fund seeks to provide long-term growth of capital while offering current income. The fund invests primarily in blue chip stocks issued by companies listed on major stock markets around the world.
While there is no universal penalty for an early withdrawal from a mutual fund, there are circumstances wherein a mutual fund withdrawal could have financial consequences, including penalties. Depending on the share class purchased, the type of account the fund is purchased in, and other miscellaneous requirements of the mutual fund company, there may be fees attached to mutual fund withdrawals.
A mutual fund is an investment company that takes the contributions of many investors and pools them into a single investment fund. One or more portfolio managers invests the collective capital according to specific investment objectives. While there are thousands of mutual funds available for purchase, there are only a few different types of major fund investment categories.
Mutual funds are investments where you pool assets with other investors with similar investment objectives. The pooling of money gives the fund manager the leverage to buy and sell stocks or bonds as an institution leveling the playing field for small investors. Mutual funds are taxed in several different ways and it is important to understand how taxes may erode returns.
Mutual funds are traditionally long-term investment vehicles, but this doesn't mean that you cannot switch one for another. Factors such as performance, expenses and diversification may all be valid reasons to search for another fund. Whereas "closed-end" mutual funds trade like stocks on an exchange, more traditional "open-end" mutual funds can also be bought, sold or switched.
Mutual funds are one of the most popular investment vehicle classes for both individual investors and institutions. According to the Investment Company Institute, at the end of February 2010, there were almost 11,000 different mutual funds holding more than $11 trillion in investor assets.
Before you invest in a mutual fund, it is imperative that you spend time looking over the fund's financial statements. Without doing this preliminary analysis, you run the risk of investing in a weak mutual fund and potentially losing money. However, it isn't difficult to analyze mutual funds if you pay attention to the specific details in both the prospectus and the quarterly financial releases.
If your state allows it---and most do---you can arrange to pass your mutual fund investments to your heirs after your death without probate. This allows your beneficiaries to receive that part of the estate much quicker. The arrangement is called a Transfer on Death, and it will convey your shares in a mutual fund immediately upon your death, whereas probate can take a year or more.
Mutual funds offer investors diversified, professionally managed investment options. The thousands of different mutual funds offer an opportunity to invest in stocks and bonds in many combinations of styles, sectors and markets. Beginning investors should not chase last year's hot funds but instead pick broadly focused funds with experienced managers and well-defined investment objectives.
Open-ended mutual funds are not traded on the equities market like stocks or close-ended mutual funds. When you buy shares of an open-ended mutual fund, the fund is creating shares for your money. When you sell your mutual fund, your shares are redeemed, not sold to someone else. Over time, an open-ended mutual fund may become so large that it closes to new investors, trading like a stock. The increase in value of open-ended mutual funds relies on the increase of the underlying stocks and bonds. Knowing the amount of fund redemptions helps you know whether the fund is still…
When a loved one dies and you inherit a portfolio of mutual funds, you need to track what the value of the funds were at the time of death. This information is vital to establishing the proper value of the estate for estate transfer tax purposes. As of 2010 IRS regulations, the beneficiary of investments receives the step-up value of appreciated equities. Once you have the value at the time of death, you are able to determine any capital gains or losses when you sell it.
The Royal Bank of Canada (RBC) offers a select group of mutual funds and money market funds that invest in Canadian government securities or a variety of domestic and international equities. These mutual funds can be purchased directly from RBC Asset Management or through an international brokerage firm. If you are not a Canadian citizen, you should consider the exchange rate in addition to the redemption costs associated with your mutual fund.
A mutual fund is a type of security that pools together the assets from many investors. Mutual fund custodians protect mutual fund securities.
Mutual funds are investment companies that hold pools of securities. Investors in mutual funds own shares of the pool, and the fund's share value changes as the fund's investments change in value. Mutual fund investors can also earn dividends. It is easy to invest in mutual funds, and they can be purchased directly from a fund company or through stock and investment brokers.
Mutual funds are becoming more and more common in the investment world, but they are still a new concept to many. What is a mutual fund? Is it better to invest with a mutual fund than to invest in stocks? How do you pick and invest in a mutual fund?
Many mutual funds available from financial professionals involve sales charges, also known as "loads." These charges are paid to the brokerage firms, which then pay a portion of the charges to the advisers as commission. "CDSC" is an abbreviation for Contingent Deferred Sales Charge.
Investing in a diversified mix of stocks, bonds and fixed-income investments can be an excellent way to secure your financial future, while reducing the risks inherent in the stock market. Keeping the proper asset allocation for your age and goals is a vital part of investing, and that is why it is so important for every investor to rebalance his portfolio at least once a year. Knowing where you stand and understanding how to move money around will help you stay on track, no matter what the market does.
As an amendment to the Securities Act of 1933 and the Investment Company Act of 1940, the U.S. Securities and Exchange Commission enacted guidelines regarding the format, content, and delivery of mutual fund prospectuses. The purpose of the summary prospectus rules are to present fund information to investors in an easier-to-understand format and to also provide investors with enhanced delivery options.
Mutual funds are just one of many investment tools available to help you build your portfolio. If you're new to investing, you may be confused as to the difference between a mutual fund and an individual stock or bond. If you're considering investing in mutual funds, learn what characteristics define a mutual fund to determine if they fit into your overall investing strategy.
Whether you’re a seasoned investor or just beginning to build your portfolio, mutual funds are a good way to diversify investments and maximize the potential for profit. Mutual funds are classified according to share type and each classification carries different costs for the investor. When choosing a mutual fund, it's important to understand the fee structure and how this may potentially affect the return on your investment.
HOLDRs is an acronym for "HOLding Company Depositary Receipts." Introduced in 1998, HOLDRs are preconstructed trusts--similar to ETFs--which are comprised of many stocks within a particular industry group. They represent direct ownership of the underlying stocks.
Mutual funds are one of the most commonly held investments for the passive investor. They are great for the individual investor who wants the risk and return profile, which only professional investors can create. In addition to the myriad fees involved in purchasing and/or redeeming mutual funds like front-end load, redemption fees, management fees and account fees, you may even have fees for exchanging or transferring your fund between common fund families. And yet, with all these fees, people continue to invest in mutual funds. There must be a good reason.
The Mutual Fund Store is a fee-based brokerage firm founded by Adam Bold. The Mutual Fund Store was founded based on an industry shift from transaction-based brokerage services to fee-based management with the theory being that financial advisers are much more likely to offer unbiased advice when their income won't change for the transaction. The Mutual Fund Store operates on this premise, offering advice on 401(k) investments and other savings programs.
Mutual funds are efficient, popular ways for individuals and institutional investors to purchase portfolios of securities. These investments can be made in one of two ways--either through a brokerage account or directly with the fund company itself.
Separately managed accounts (SMAs) are a type of mutual fund that allows for more customization than many general funds—though customization that requires more individual involvement.
If you have your retirement or investment assets in a mutual fund, you can move those assets at any time. You can move some, or all, of your assets from a mutual fund to another investment vehicle such as an IRA, or you can make the assets liquid and move the cash into your checking account. In order to move your assets from a mutual fund to your checking account, you will have to sell those assets to convert them to cash.
Mutual funds, by law, are required to maintain certain levels of diversification and be operated in the best interest of the public. They are sponsored and operated by investment management companies, which fall under the supervision and regulation of the Securities and Exchange Commission (SEC).
A mutual fund is a group of stocks or securities used for investment purposes. The mutual funds industry is based on general market conditions as well as the mutual funds themselves.
A mutual fund is an investment vehicle that pools money together from a number of investors and invests it in various combinations of stocks, bonds and other securities. Oftentimes these funds are managed by a person known as a fund manager. There are many types of mutual funds, including ones that invest in specific industries, ones that invest in companies based on size, and ones that invest based on varying strategies, including growth and value funds. Mutual funds can be an affordable way for someone without a lot of capital to invest a little in many companies. This diversification can…
Taking money from a qualified plan such as an IRA or 401(k) that invests in mutual funds and rolling it into a qualified annuity is easy to do once you have determined the annuity you want to invest in. There are those who advocate using annuities to maintain qualified plans while others say that the fees associated with mutual funds maintained in qualified annuities are too costly and are not outweighed by the benefits. There are also mixed reviews for those rolling money into a fixed annuity as well. If you have any questions as to whether an annuity is…
Mutual funds are an investment technique whereby many investors pool their money together and invest that money into many different types of securities simultaneously, under a single umbrella. Investors find mutual funds lucrative because the investments are diversified, the management of the money is done by professionals and the minimum investment amount is typically low. If you plan to form a mutual fund, consider the legal requirements.
CUSIP stands for Committee on Uniform Security Identification Procedures. All U.S. investment securities have a CUSIP number that is used as a unique identifier for that issue. The number is assigned by Standard & Poor's (S&P) and is available in a database published for a considerable fee. You can also use a free online tool, such as the one available on Fidelity.com that is also endorsed by LexisNexis, a well-known research database.
Mutual funds are the most common form of investment in America. As of 2009, there are more than 8,000 mutual funds operating in the American market, with the most well known being American Funds, Fidelity and Vanguard. With so many options to choose from, it is important to know the advantages and risks associated with any funds you are considering.
Of all the investment instruments managed by investment professionals, mutual funds are among the most conservative. These experts are paid to create and preserve wealth over time. There are some mutual funds, however, that are even more conservative than others, and which require more time to generate returns.
We all fear buying a "lemon." For a car, purchasing a lemon means you've purchased a car that may look okay from the outside, but needs repair to perform properly. This is the same for mutual funds. A mutual fund "lemon" is a mutual fund that is not performing well. Performance is defined as rate of return or the amount of earnings made from the initial investment in percentage form. The following information is provided by Morningstar. Morningstar offers in-depth news coverage on a host of investment research topics.
The debate about whether investing or paying down debt is a better financial decision has been going on for years among personal finance experts. In most cases, if you have debt with high interest, you will be better served by paying it down before investing any money in mutual funds. The chief controversial exception to this is a mortgage, because such debts are highly liquid in that they can be discharged relatively quickly by selling the house.
While investing in gold is a useful alternative, it carries with it a number of important considerations. There are several methods to gain exposure to precious metals--and some strengths and drawbacks.
Mutual funds are prized for their diversification, but when the markets go down, many mutual funds lose value as well. When a fund is cut in half, investors can be paralyzed into inaction, and may lose faith in basic investment principles. However, these are the times when not doing anything can make things worse, and when an investor should be proactive with his investment portfolio.
Mutual funds are commonly held by a wide variety of investors. These securities allow individuals to pool their resources to purchase a more diversified portfolio of stocks and bonds than they would otherwise be able to on their own. In addition, mutual funds are managed by professionals who handle all of the trading, record keeping and reporting. However, over time an investor's needs can change. When they do, the need to transfer mutual funds arises.
A prospectus is a document containing information about a particular mutual fund. Investment companies are required by law to provide them to investors and potential investors.
Some historians suggest that the first mutual fund was started by Adriaan van Ketwich in 1774. However, it would take another one hundred and fifty years for the modern day mutual fund to come into existence. It started in Massachusetts and, after evolving over the years, is still in operation today. Mutual funds are companies that bring money together from many investors to have more pull over investment power.
Investing in an IRA involves many taxation and investment issues that are not relevant to regular investment accounts. For example, some securities that can be purchased in other investment accounts, such as collectibles, cannot be owned in an IRA. However, the actual procedures of investing in an IRA are the same as investing in other accounts. If you want to rid your IRA of mutual funds, you will follow the same procedures as you would in a regular investment account.
There are many different reasons for cashing out a mutual fund. You might want money for a home remodeling project, to support a child's education or just to pay bills during hard financial times. Whatever the reason, make sure cashing out the mutual fund is the best option.
A 401k allows employees to direct money from their paychecks into a company-sponsored retirement plan. The money earned is tax-deferred until withdrawal. Often, the company will match the employee's contributions. Investment options, including mutual funds, differ depending upon the company and the 401k it offers.
Bond yields could be higher if the Federal Reserve raises interest rates (short-term ones), according Tobias Levkovich, the Chief Equity Strategists with Citigroup Global Markets, in Smart Money.com.
If your mutual fund has lost value, you can often take advantage of the loss at tax time. By selling your fund shares, you can use your capital loss to offset any investment gains you may have made in other investments, thereby reducing your taxes due. Even if you have no offsetting gains, you can use these realized losses in future years.
You need not be a savvy investor to earn money in today's financial market. However, you will need a bit of knowledge about mutual funds. Mutual funds offer the average individual the opportunity to pool assets with other investors, increase buying power and potentially earn investment income. According to Barron's Dictionary of Finance and Investment Terms, "a mutual fund is operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, futures, currencies, or money market securities." Keep reading for an in-depth look at mutual funds.
Mutual fund distributions can create a tax bill for you even if the total value of your shares has fallen below what you originally paid for them. This tax bill can be avoided by selling mutual fund shares in one of four ways that are beneficial to you, by selling other investments you own at a loss, or by a combination of the two.
A mutual fund is a large portfolio of securities created with funds invested by a number of individuals. Most mutual funds issue shares as people invest and redeem the shares when investments are liquidated. The price of a share is determined by dividing the net asset value (NAV) of the mutual fund by the number of outstanding shares. The result, called the average NAV, is the mutual fund share price. When a mutual fund's investments do well the securities in the portfolio grow in value, increasing the NAV and therefore the worth of each share. There are exceptions to the…
If you're going to invest in mutual funds, you should sign up with a reputable broker. Founded in 1875, Prudential is a well known financial institution. While you can always access Prudential securities and mutual funds online, you might have a desire to meet with or speak to a representative in your area.
Gold mutual funds are a great way to hedge against risk in any investment portfolio. Gold will typically rise as the markets go down. Having gold mutual funds will provide downside risk protection to any portfolio.
Many investors purchase mutual funds to diversify a portfolio, to let professionals pick and choose, and to limit risks. Mutual-fund prices are listed in the financial sections of many newspapers and on many websites. Historical prices can be found on a fund company's website and on other financial sites.
If you have a 401k or IRA, then you probably own a mutual fund. Mutual funds have become a staple in individual investment portfolios as they provide the investor with automatic diversification and professional asset management. Despite this, most investors probably have difficulty understanding their account statement, and the different terms listed.
We all have our favorite charities. While donating cash is always an option, you can also donate mutual funds or shares of stock. The specific process is dependent on the organization, however, there are some common steps that can be helpful to maximize your gift as well as any tax benefit that may come along with the donation.
Mutual funds are one of the most popular investment vehicles for individual investors for two main reasons: They provide automatic diversification; and they are managed by professional account managers. If you own a 401(k) or IRA, chances are you also own a mutual fund. Tracking a mutual fund is no different than tracking a stock. Whether you choose to own the fund for the instant diversification or the professional management it offers, the more you know about the history of the fund, the better you will be at choosing one that fits your needs.
CGM Realty (ticker symbol CGMRX) is an open ended mutual fund offered and managed by The CGM Funds, Boston, MA. CGMRX is a specialty fund with holdings concentrated in the real estate sector, and it has a growth objective focusing on equity holdings of companies within that group.
Mutual funds are one of the most popular investment classes in the U.S. At the end of 2008, America had $9.6 trillion invested in mutual funds. A large portion of 401k and IRA money is in mutual funds as well as regular investment accounts.
Most people have neither the time nor interest to research and select individual stocks and bonds for their investment portfolios, and that's where mutual funds come in. Mutual funds are composed of stocks, bonds and other assets, giving you diversification, which means a decline in value in any one stock or bond won't significantly hurt your overall return. A handful of well-chosen mutual funds or index funds can offer a diversified portfolio that allows the individual investor to spend his or her time on other pursuits. Thousands of mutual funds are available that can satisfy the objectives of different types…
A mutual fund is an investment vehicle made up of a pool of funds from a group of investors. These funds are invested in a range of assets, from bonds and money market instruments to stocks. Mutual funds are professionally managed by fund managers and structured to maintain the investment objectives set forth in the prospectus. Tracking the history of mutual funds is no different than following regular stocks.
Picking mutual funds for your 401(k) or IRA can be a challenging feat. Moreover, the selection of the funds can affect how much you save for retirement. Look for some key factors to guide you in choosing the right funds for your portfolio and put yourself on the way to a good secure retirement. Take a look at independent mutual fund screening websites to see how the funds you like are rated.
Mutual funds are actively managed pools of securities. Investors buy shares in the fund to participate in the income and profits generated by the securities held by the fund. The modern open-end mutual fund has been around for quite a while and the original open-end mutual fund is still in existence.
For someone new to mutual funds, trying to find the right one to invest in can seem overwhelming. There are thousands of mutual funds. Actually, the process of selecting mutual funds is one of the most straightforward for investors. That's because there are excellent screening tools available for free on the Internet. Plus, all mutual funds must publish a prospectus annually that discloses most of the basic information an investor needs. If you are interested in mutual funds as an investment you'll need a general knowledge of the structure and types of mutual funds and a clear idea of what…
Mutual funds are portfolios of investment capital directed by professional fund managers. A good mutual fund is a solid choice for beginning investors who may have limited funds. Many funds require an initial commitment of around $1,000 and allow you to add money in increments of $100 (sometimes less). There are a variety of free online mutual fund comparison tools that you may use to screen funds. To use them effectively, you'll need an understanding of the basic measures they use. Online tools are a great time-saver, but ultimately your primary mutual fund comparison tool will be the fund prospectus,…
Retail mutual funds remain one of the most popular avenues for people to invest. Retail mutual funds offer the average investor a quick, easy and relatively inexpensive way to create a diversified portfolio. Although retail mutual funds feature a variety of investment objectives, you should carefully understand the risks associated with the different objectives before investing.
Mutual funds are a popular investment vehicle for the public. Some of the popularity may be owing to there being more than several thousand such funds to choose from--all highly regulated. Not all mutual funds are suitable for every investor however; some funds make much riskier investments than others or have different investment objectives. Be sure to consider all of the details of a mutual fund in your evaluation including the investment objective, fees and the track record.
Mutual funds are an investment vehicle popular for several reasons. Investment minimums are modest. You can usually start with no more than $1,000 and add more in increments of $100 or even less. Fund managers do the work of finding and researching investments. The fund provides risk reduction because it's a diversified portfolio. However, mutual funds are not risk-free. Except for bank-provided money market accounts, mutual fund investments are not insured.
Mutual funds are a popular investment type due to the fact that they offer the opportunity to invest in multiple companies with a single purchase, as well as their relatively low costs compared to purchasing individual securities. While the holdings in mutual funds can vary greatly depending on the fund's objectives, blend mutual funds, also called hybrid funds, attempt to provide a mix of investments that are designed to achieve a balance between risk and reward.
Mutual funds can be seen as some investors' bread and butter. Across the financial spectra you will hear lots of good and bad things about mutual funds and why you should or shouldn't buy into them, but the bottom line is that mutual funds are just one more investment tool that can be used to diversify your portfolio. In this volatile market, investors are continually looking for ways to limit their losses and achieve reasonable rates of return and mutual funds can allow them to do quite handily. You can choose as aggressive or as conservative a mutual fund as…
There is a reason why mutual funds are so popular with investors. They allow those with any amount of money to participate in large strategy investing. Investors like the fact that mutual funds can correspond to their investment objective with managers making the investment choices within the fund. Mutual funds are used for long-term investing and retirement investing for many people.
In many ways, the explosive growth of the mutual fund business coincided with the industry-wide enthusiasm for Modern Portfolio Theory. Ironically, though the vestiges of Modern Portfolio Theory continue to permeate financial service practitioners' presentations, the popularity of Modern Portfolio Theory may be on the wane as a new generation of academic researchers gravitates toward behavioral finance as the preferred theory.
If you're just starting to build an investment portfolio, then you'll probably want to consider retail mutual funds before you invest in individual stocks. Retail mutual funds allow you to take the advantage of diversifying your investments without requiring a lot of money to start with.
If you need to calculate the the price of a mutual fund, the process can take a bit of research, but once you have the information, it's just a matter of making a few calculations. This article will explain the process by which a mutual fund is priced.
Mutual funds are distinctive because instead of buying a security like stocks or bonds issued by a single institution, you buy into a portfolio that includes securities issued by a number of companies and/or government agencies. This diversification reduces risk for investors. Of course, you can build such a portfolio yourself, but you must research and select each investment yourself. In addition, many investors (especially those starting out) don't have the resources to buy a really diversified set of securities. For these, mutual funds are a very attractive option.
Mutual funds are a popular investment because of their relatively low costs and ability to match or beat the market over time. But looking strictly at the share price of funds may not always give a complete picture of how the fund is performing. Understanding a little about mutual fund accounting will allow you to better determine which fund is right for you.
The mutual fund is the most common form of investment made by retail investors. A mutual fund is a collective investment where a fund company pools capital from various investors and distributes returns proportionally.
Mutual funds are great investment vehicles for people who don't have either the money or risk tolerance for individual stock and bond purchases. They allow the layman to invest in a variety of several hundred companies at once with low minimum investments and a diverse set of risks. While mutual funds are investments and offer fluctuation risk and investment risk, they mitigate the loss by spreading the risk over many companies that meet a specific investment objective. For those new to investing or saving for retirement, mutual funds are a great way to get their feet wet and learn about…
Building a mutual fund portfolio is not difficult. The hard part is building one that will provide a good return. While it is impossible to show you how to build a perfect portfolio, there are some steps that every investor should take in order to choose the right mix of funds. Careful consideration should be given to your objectives and priorities and the optimal number of funds you would like to include. You should also consider your specific tax situation before making any decisions.
Mutual funds come in a many types and are designed to meet the specific needs of investors seeking ways to increase their profits. Funds invest in a range of stocks, bonds, and commodities, either individually or collectively, depending on the time frame and risk.
A mutual fund is a key product that is designed to accumulate money for the investor. Invest wisely into something that will grow and help with retirement with tips and advice from an experienced financial adviser in this free video.
Core mutual funds look at the company's core business, whether it is retail or service, and bases decision on that. Understand what is meant by the word core when referring to mutual funds and how it plays a role in investing decisions with tips and advice from an experienced financial adviser in this free video.
A family of mutual funds is really a specific sector of the economy such as telecommunications that has many related funds within it. Understand what is meant by the word family when referring to mutual funds and how marketing plays a role in investment terminology with tips and advice from an experienced financial adviser in this free video.
One disadvantage of a mutual fund is the loss of principal. Find out more about mutual fund disadvantages with expert tips from a registered financial consultant in this free video on financial planning.
Mutual funds are one of the best investments to make, but be prepared to deal with some risks. Find out more about the best mutual funds with expert tips from a registered financial consultant in this free video on financial planning.
A Blue Chip Mutual Fund is an investment correlation of some of the largest companies in America. Decide if a Blue Chip mutual fund retirement account is a good investment with tips and advice from an experienced financial adviser in this free video.
Oppenheimer Mutual Funds (now called OppenheimerFunds, Inc.) is an asset management company that has been helping people with their investments since 1960. The Oppenheimer Mutual Funds offer a wide selection of investment products to individuals, institutions and corporations. Oppenheimer Mutual Funds are headquartered in New York, New York, and has assets of over $250 billion under management. Products offered by Oppenheimer Mutual Funds include mutual funds, retirement plans and education savings plans. With over 65 different mutual funds, an investor is surely able to find a product to suit his needs.
Mutual series funds are a group of mutual funds. As an investor, you buy mutual funds and own part of that mutual fund. You have a share in the increases and or decreases in the value of that fund. Mutual series funds can focus on stocks, bonds, cash or all three combined. The money you receive from your mutual series funds can be in a check, or you can reinvest your earnings to receive more money. The basics of understanding mutual series funds can be acquired through the proper knowledge of investing in them correctly. This will allow you to…
"A penny saved is a penny earned." In these times, that saying couldn't be more true. Once you have realized this, you then have to figure 'how' to save your money. Most people, who save, usually just have savings account that they contribute to. This is fine, but the problem is that in the case of an emergency people usually dip into their savings and over time its practically gone. There's nothing wrong with spending 'your' money, especially if you need, but the key is to set limits. A great way to set limits is by having two separate saving…
The Royal Bank of Canada offers nearly 50 mutual funds in a variety of industries and investment vehicles. These funds let investors support and profit from the Canadian economy with moderate risk and without the need for large capital outlay. RBC Asset Management handles the funds according to an investment process defined by the bank. Because information about these mutual funds is available online, investors can keep track of their money without the need for an intermediary.
A mutual fund prospectus is the outline of a mutual fund that gives information on past performance and the direction of the fund. Find out whether a mutual fund is looking for high-dividend paying stocks or debt instruments by reading a mutual fund prospectus with help from an investment manager in this free video on investing.
A 403B is a retirement savings plan that accumulates money tax-free and can be put into a mutual fund to earn more money. Use a 403B plan to keep employees happy with their retirement plans using advice from a financial consultant in this free video on retirement funds.
ING Direct has begun to offer their customers the option to purchase mutual funds. With this option customers are allowed to purchase the mutual funds separately or with a mixture of Conservative, Moderate or Aggressive tendencies.
The Hartford Company can be considered a matured, solidified company. Most of the time--with the mere mention of their name--life insurance usually comes to mind. However, there is an extension of the company that now has dealings in investments: Hartford Mutual Funds. This is a company that offers a wide array of investment opportunities.
Mutual funds are a type of investing in which an individual can deposit money into a fund and receive a share in the value of that mutual fund. Find out about the strategy of mutual funds to invest in certain parts of a market place with help from a registered financial consultant in this free video on investing and money management.
To pick a mutual fund, consider the cost of investing, the load on the front and back end, the internal expense, how it fits into current investments and the asset class of the mutual fund. Understand the tax implications of purchasing a particular mutual fund with help from a financial planner in this free video on investments.
The Canadian Imperial Bank of Commerce, or CIBC, is a major financial services company. The organization was created by the 1961 merger of the Canadian Bank of Commerce and the Imperial Bank of Canada. In addition to providing traditional banking functions, financial planning and travel insurance, CIBC also operates an investments brokerage company that markets its own family of mutual funds.
Mutual funds are a specific type of collective, pooled resource investments unique to the United States and Canada. The average value of the mutual fund market is in the range of $20 to $25 trillion. While different investment laws govern the buying, selling and holding of Canadian mutual funds, these funds generally follow the same principles and guidelines as the mutual fund market in the U.S. and are usually financially linked to Canada's southern neighbor. However, enough subtle differences set apart the Canadian investment market from the U.S., and investors should be aware of the potential for profits and pitfalls…
Even in good times, investing can be tricky. Conventional wisdom suggests investors diversify their holdings across both types of assets and stocks within those categories. However, achieving such diversification can take a large investment and a lot of research. Mutual funds provide a way to obtain diversification by pooling investor money to manage a portfolio of stocks. The Selected Funds is a family of mutual funds that can be used by investors to achieve their goals.
Mutual funds tend to be less risky than buying individual stocks because of the diverse group of investments held by mutual funds. Consider the track record of the mutual fund manager, the individual securities in the fund, and the mutual fund company reputation to assess risk with help from a financial consultant in this free video on investments.
Mutual fund portfolios are a collection of mutual fund accounts that make up much of a person's or family's financial assets. Mutual funds pool together the investment money of thousands of people so the group can buy large amounts of stocks, bonds and other financial securities. Each investor buys "shares" in the mutual fund and gets a proportional amount of the profits and losses.
Dodge and Cox Funds is a San Francisco-based investment adviser founded in 1930, after the crash of the stock market and amidst the beginnings of the Great Depression. In the words of co-founder Morrie Cox, the company's basic vision was that "well-conceived professional investment management could bring the force of some order into a rather chaotic investment world."
Mutual funds are a popular form of investment suitable for new and more experienced investors. These funds pool the money of shareholders to buy, sell and trade various types of investments. While some mutual funds trade only stocks, others invest in bonds, commodities, precious metals or international stocks. Many mutual funds invest in a variety of investments. The main advantage of these funds is that they are professionally managed. But with so many mutual funds on the market, it is important to find the top-performing ones. Interpreting the earnings history of a mutual fund is one way to find funds…
The mutual fund window, or "window dressing" a mutual fund, refers to the practice of adjusting the fund's portfolio in a specific time period, usually in the last few days before the end of a fiscal quarter and the fiscal year. Mutual fund managers sell stocks that did not perform well and purchase stocks that did so that their fund appears to contain more winners than losers. Often, the fund manager buys stocks that increased in value and sells stocks that lost after the stocks made their move, but the end of the quarter portfolio contains a list of winning…
Private money management company Lord Abbett is one of the oldest such firms in the United States. The company's specialized approach to investing has resulted in its overseeing more than $87 billion in assets as of 2008. Because of Lord Abbett's reputation for providing quality service, its mutual funds are a favorite choice in the financial sector.
Janus mutual funds is actually Janus Capital Management and that is actually Janus Capital Group. Headquartered in Denver, Colorado the company manages over $200 billion dollars in assets. Janus is regarded as one of the best managed mutual fund companies in the world, focusing on growth stocks that are backed by an intensive research program.
Investors have many mutual funds to choose from these days. While most mutual funds trade stocks, other funds buy and sell bonds like corporate or government bonds; precious metals like gold, silver and platinum; and commodities like oil, lumber or oranges. All mutual funds work basically the same way. The only difference is in their portfolio or the list of assets in the fund. Mutual funds are also valued in similar ways. The net asset value, or NAV, is the total worth of all the fund's assets.
If you've decided to invest in mutual funds, you may be considering Scudder Mutual Funds. DWS Investments, formerly DWS Scudder, offers a broad range of plans, giving an investor access to the world's marketplace. As part of Deutsche Bank, DWS Investments offers round-the-clock market and economic analysis on a global scale.
Goldman Sachs mutual funds are collective investment portfolios directed by the Asset Management branch of the international holding company Goldman Sachs Group, Inc. Goldman Sachs is one of the oldest American based financial institutions, and its mutual funds have always been considered secure and profitable investment options.
USAA (United Services Automobile Association) is well known as a military-orientated property and insurance company. In the last several years, the company has become widely-known for its investment opportunities, specifically in mutual funds. WIth a number of fund types available, USAA's mutual fund family has a number of four and five star rated funds available for consumer investment. In order to provide a one-stop-shop for all products, USAA's on-line portal to acquisition and management of mutual fund portfolios allows the consumer to conduct all business in one location online, but also provides access to financial advisers in order to answer…
BRIC is an acronym for Brazil, Russia, India and China. BRIC Mutual funds allow investors to profit from the emerging economic boom being experienced in these countries. In real estate, wealth is measured in bricks. In the world of investments, wealth is measured in BRICs.
SBI mutual funds are sponsored by India's largest bank. One of the reasons that these mutual funds are so popular is because they have a very good track record of getting money for their investors. Another large contributor to SBI mutual funds is Société Générale Asset Management who manages over 500 billion USD around the entire world. Usually endeavors initiated by SBI mutual funds have paid off for their investors. Their main motto is "Growth through innovation and stable investment policies."
When analyzing a mutual fund prospectus, an investor will find the term MER. This stands for Management Expense Ratio, and it is a measure of the various expenses incurred by the fund on an annual basis. When a mutual fund or fund rating service publishes its annual return, it is the net return achieved after all expenses. Therefore, if two mutual funds had identical annual returns, the fund with the higher MER actually performed slightly better.
Diversification, or spreading your risk among a variety of different investment options, may be the best advice any broker ever gave. Americans have responded by pouring huge sums of money into mutual funds both for personal savings and in Individual Retirement Accounts and 401(k)'s. But with the recent volatility of the stock market, some investors are turning to gold and precious metals as a hedge against the uncertainties of the future. Precious Metals Mutual Funds can help investors participate in this traditional safe haven and still diversify their investment.
Franklin Templeton Mutual Funds are a family of mutual funds that are managed and sold by the global investment management organization, Franklin Templeton Investments. The parent company, Franklin Resources, Inc., has offices in 30 countries around the world and offers investment services in more than 150 countries. The company is headquartered in San Mateo, California. The company traces its heritage back more than 60 years and has a reputation for frugal, conservative investing practices.
An individual retirement account, or IRA, is a type or retirement savings plan that carries certain tax benefits. In IRA is similar to a 401k, in that the saver makes contributions toward their plan, and the plan is in turn, invested in a variety of assets which may or may not be at the investor's discretion, depending on the type of plan one chooses. One of the main investments the money pool goes into for either type of account is often mutual funds, which offer growth potential that conforms to the stock market, with the diversity of holding many stocks.…
A mutual fund consists of a pool of investments that have all been placed into a single investment fund. Through expert analysis by the company that manages the fund, those who invest in mutual funds benefit from less risk and professional investment experience. Whereas traditional mutual funds invest largely in stocks, a forex mutual fund invests in the currency trading market.
A commodity mutual funds works like any other mutual fund. The money of investors (or shareholders) is pooled into a fund that is managed by a professionally trained investment adviser. But instead of buying and selling stocks and bonds, the fund buys and sells commodities. Commodities are naturally occurring or grown products. These include oranges, wheat, livestock, coffee, lumber, gold, sugar, crude oil, pork bellies, cotton, and numerous other items that are a part of our daily lives.
Gold has been revered since ancient times. Today it is one of the most important and the most expensive precious metals available. While gold is extremely popular for many reasons, it is also in short supply. If you want to invest in gold and take advantage of its lucrative possibilities, buying into a gold mutual fund can be a smart investment move.
When you think about investing in a mutual fund, silver may not be the first thing that comes to mind. In reality, though, silver is but one aspect of precious metals mutual funds and can be a sound investment option. While you can diversify your portfolio to invest in gold, silver, platinum and other precious metals, let's take a closer look at silver mutual funds.
Precious metals are gold, silver, platinum and palladium. These metals are very popular and have a wide range of uses, from jewelry to cars to medical instruments. The demand also exceeds the supply so these precious metals are expensive. If you want to make money with precious metals, investing in a mutual fund is the safest method. While you could invest in bullion (bars of metal), coins, jewelry, stocks in mining companies or other investment items, these methods require more expertise, research and time. Investing in a mutual fund allows you to make money while others professional manage the fund.
The term BRIC is short for Brazil, Russia, India and China, four of the world's largest developing economies. The recent economic growth in these markets has outpaced those of most developed nations. This makes the four countries an increasingly attractive prospect to foreign investors whose home countries are seeing economic slowdowns or stagnation. Adding investments in developing nations to a portfolio provides diversification and large potential gains that aren't necessarily pegged to the performance of the more developed world markets.
Since the turn of the 21st century, investing in precious metals has become increasingly popular, as the prices of gold, silver, and platinum have risen at rates that have outpaced the stock market. Since silver is a commodity which is limited in supply, and there are essentially no substitutes, as there are for crops and oil, its price has risen steadily since 2001. Direct investment in silver can take the form of purchasing the metal itself, in the form of bars or bullion, or investing in companies within the silver business. Silver mutual funds present an easy alternative to gain…
Mutual funds are one of the most popular types of stock market investments. There are literally thousands of mutual funds available, each with its own investment objectives, fees, risks and benefits.
Mutual funds are one of the most popular investments out there, but like all investments, they do carry some risk. However, not all mutual funds are created equal, and each one has a different set of risks and expenses, plus a different function in your asset allocation. There are literally thousands of mutual funds out there to choose from, so with a little research you should be able to find the mutual funds that are right for you, depending on your individual risk tolerance.
If you work for educational institutions or other nonprofit employer, you're eligible for a 403(b) plan. The plan gets its name from the number in the tax code and began in 1958. There are various ways to fund a 403(b) plan, but to find out what it has to do with mutual funds, read further.
A mutual fund is a type of professionally managed investment that uses money pooled from many individuals. Commodity mutual funds use a portion on this pooled money to invest in commodities, typically in the form of commodities futures. Commodities are actual deliverable goods, typically raw materials or agricultural products, such as hogs, wheat, iron, timber, gold, crude oil, soybeans, sugar, coffee beans, silver, iron ore and rice.
Financial experts often advise novice investors to purchase shares in mutual funds. A mutual fund is actually a company itself, with the sole purpose of buying and selling stocks, bonds and other investment commodities on behalf of shareholders. Fund managers make decisions about where to invest shareholder money, aiming to outperform individual investments while minimizing risks. Like other investments, mutual funds carry no guaranteed interest rates or returns. Fund managers often promote their portfolios by releasing performance statistics from the previous thirty years or from the fund's inception. A typical mutual fund launches as an open-ended company with a focused…
An investment company opens up a fund called a mutual fund and then encourages shareholders to invest in the mutual fund. The mutual fund generally has a theme, such as "Index 500 Companies" or "Long-Term Insured Municipal Bonds." The investment company uses the invested money to buy shares in a wide variety of financial investments that match the theme of the mutual fund. While an investor in a mutual fund might only own one share of a mutual fund, the mutual fund itself owns multiple shares of multiple investments.
Selecting a good mutual fund is tricky, but as long as the fund has at least a five-year track record, that is an ideal history time line. Choose a well-performing mutual fund with a long-term performance record with advice from a financial planner in free personal-finance video.
A mutual fund is an investment vehicle that pools together the money of thousands of investors to buy units that are called shares. It is one way anyone can invest money without investing a large sum of money for long- or short-term goals.
Mutual funds can be a powerful investment tool, allowing you to buy in to the funds without the need for extensive stock research. When the mutual fund matures or you decide that you want to sell your shares, though, you may find yourself wondering exactly how to redeem your mutual fund investment. Mutual funds are actually quite easy to redeem, so you should have no trouble redeeming your investment whenever you are ready to do so. Read on to learn how to redeem mutual funds.
There are many factors to consider when choosing a mutual fund. This article breaks down some of the technical indicators that should be evaluated by investors seeking a fund that matches their needs.
Investing in mutual funds is an excellent vehicle to fund a person's retirement. If the mutual funds are not properly diversified, however, that retirement could be put on hold. Protecting a portfolio against fluctuations in certain markets is essential to long-term financial health.
Mutual funds are popular investments, providing diversity and a good return overall. However, investing in mutual funds is not without its risks. If you do your homework before selecting a fund, though, you can choose the risk level that is right for you.
Mutual fund software is plentiful and available online, in computer software stores, bookstores and department stores with software sections. The software allows you to create flowcharts, organize your investments and even pick investments to help diversify your portfolio. Though the reliability of mutual fund software is questionable, particularly if you're using it to help you pick stocks or bonds, it can be a useful tool for beginning investors.
Your portfolio is your total collection of investments. Stocks, bonds, real estate, gold and mutual funds are all common types of investments you might hold in your portfolio. When you are ready to construct a mutual fund portfolio, the key to success is diversification. You want as many different types of funds in as many different sectors as possible to achieve balance and make money.
Mutual fund quotes are an indispensable part of the investment process. No matter which stage you're at, there's no doubt mutual fund quotes are a consistent part of your life. Investors turn to quotes to establish essential information about a fund prior to purchase. Once an investment has been made, quotes can be used to stay up-to-date with current market value and performance. When you're ready to sell your shares, you'll turn once again to mutual fund quotes to find out the net asset value (NAV) of your fund.
Your mutual funds style means how your fund works with assets. This covers whether it's large, mid- or small-sized, and what kinds of assets it has--growth, value or blended. Style drift is a term that refers to a fund manager changing the fund's style over time for various reasons. The best way to avoid style drift and stay in the same style as you began is to invest in index funds. Such funds try to match the market and therefore have no reason to wander.
The terms and options may be daunting, but mutual funds are a fairly safe choice for beginning investors. Like in all investing there are risks involved, but knowing how to pick your mutual funds and choosing a reputable broker will help you see the greatest return on your investment.
Automatic reinvestment is a tool used by mutual funds that allows investors to purchase additional shares in the fund using their dividends or capital gains distributions. It's similar to an automatic deposit into your checking account. In this case, money comes in the form of dividends or capital gains distributions, which you receive when the mutual fund does well. Additionally, instead of sending you the earned money, your fund manager reinvests it into your mutual fund. This gives you more shares of your fund and helps avoid excess taxes.
So, you've decided you want to invest in a mutual fund. Now you're wondering how to begin. Before you drop a big chunk of your hard-earned cash into a mutual fund you may know little or nothing about, consider looking into an introduction to mutual funds. It's easy to locate tutorials that will teach you all you ever wanted to know and more about mutual funds. All you need is a good search engine and a little perseverance.
In an ever-changing financial world, the analyst is often the voice of reason. We live in a competitive era of hyperbole, so to have a neutral voice standing out from the noise is imperative for the investor, whether investing with an advisor or on one's own. If you're looking at investing in mutual funds, in particular, reading analyst reports can be extremely helpful.
Reading the mutual fund prospectus is the most important part of investing in a mutual fund, yet many investors don't know how to read it. There are three main elements to the mutual fund prospectus: the investment objectives, the costs and the fund's performance. Once you know how to read these, your mutual fund prospectus will seem far less daunting, and you will be a much better informed investor.
Mutual fund symbols can look pretty strange, but once you learn how to read them they make a lot of sense. Mutual funds, like stocks, use ticker symbols as abbreviations for the fund's name. Different types of investments have different ticker symbols. Mutual fund symbols are 5 letters long and end in X. Symbols after the fund's name tell you more information about the type of fund it is.
Biotechnology is any technological application that uses living organisms and/or biological processes. Biotech companies handle recombinant DNA, tissue culture, stem cell research or genetic manipulation. Here are some guidelines for finding the best biotech mutual funds.
Many investment pros want to sell you the way to find the best mutual funds, but the truth is that the best funds for someone else may not be the best funds for you. That said, there are a few key tools available that can help you find mutual funds that suit your needs.
Even though the rising tide of the stock market has lifted a lot of mutual fund "boats," it's still essential to keep an eye on where your particular boat is heading.
Sometimes it seems there are as many mutual funds as there are people, but it's important to take the time to choose the ones that further your investment goals.
