10 .Factors Influencing Investment Decision . . Financial

Overview of subject matter essential for the individual who requires general knowledge of the mutual fund industry and related topics. The individual may want to become a professional in the mutual funds industry or simply want to expand their knowledge of mutual funds for personal interest.

Investing behavior should be driven by information, analysis, and self-discipline, not by emotion or ‘hunch.’

Mutual Funds are a pool of funds collected from many investors in order to purchase stocks, bonds, and other investments in greater amounts. Mutual funds are shares of ownership in a group of companies.

think of a mutual fund as a company that brings together a group of people and invests

Regarding the discussion of removing information and assistance with investing in stocks and bonds from Morningstar Inc, and solely focusing on mutual funds, I would suggest that it could adversely affect the company. However, focusing on just mutual funds would increase the company’s reputation by maximizing returns for investors due to the less risky nature of mutual funds (Bihari & Shukla, 2012). I believe the firm may lose clients and future customers that would rather invest in stocks or bonds. Without having these diverse options on where to invest, Morningstar Inc, consumers may seek out alternative investment

As a manager for Morningstar, where they rely on my judgment in making big decisions, when the organization started discussing dropping stocks and bonds and focus solely on mutual funds, I had to contemplate this decision to decide if it would help or hinder the organization. In my opinion, the decision to only focus on mutual funds would hinder the company by cutting down the diversification that we offer to our clients. Morningstar was founded in 1984 by Joe Mansueto, who started this business to help individuals make sense of investing by cutting down on the confusion. Mansueto realized that in order to assist investors he would need to create a compendium of information for each fund out there, to make it easier for average investors to invest wisely. Our company

Mutual fund has been existing for a long time, but there are still a lot of details about it are not very clear. Generally, this paper is discussing not only the overall performance of mutual funds, but also the functions of each subpart and how are they related to each other. Specifically, there are several questions been answered: how is mutual funds’ overall performance? What is the factor that affects its behaviour the most? How does each composition affect the overall performance? Will there be any differences between the actively managed funds and passively managed funds? How are mutual funds’ performance compared with other market index during the past, specifically from 1975 to 1994? How to understand the fund’s performance by looking at the correlations and so on? By studying these questions separately, a better understanding of mutual funds and their properties will be obtained.

The Vanguard Group offers an array of mutual funds, exchange-traded funds, brokerage, and asset management. When choosing and comparing mutual funds, there are characteristics that you need to first evaluate. This paper will review five different categories of mutual funds that Vanguard Group offers its investors.

“However, there are over 10,000 mutual funds in operation, and these funds vary greatly according to investment objective, size strategy, and style. Mutual funds are available for virtually every investment strategy (e.g. value, growth), every sector (e.g. biotech, internet), and every country and region of the world. So even the process of selecting a fund can be tedious” (Staff).

Historically, people invest their money in mutual funds as a means to generate extra income. This can be separated into either stocks or bonds, with each having their specialty in a portfolio. The following report provides an analysis of two funds, the Fidelity® Nasdaq® Composite Index Fund (FNCMX) and the Fidelity® Floating Rate High Income Fund (FFRHX). The analysis of the yearly returns of each fund from 2005-2014 will include the risk and return for investing in each with key statistics such as mean, median, standard deviation, and range for indicators of their performance. These statistics will be paired with visuals so the client can have a visual representation of what they look like. The analysis will also compare the performance

National Mutual Funds (NMF), founded in the 1940s, is one of the most important mutual fund companies in the brokerage industry in the United States. The company has extended from a mutual fund company to a financial center offering mutual funds, brokerage products including stocks and bonds, insurance products, and a variety of planning tools to help customers save for major life needs. However, since the market downturn, which is hurting many brokerage and mutual fund houses, NMF’s profits and operations have been affected significantly. To respond to the market slowdown, Harry Smallwood, President of NMF Retail Services, has come up with a directive to reorganize the call centers in the Retail Services Division in an effort

Mutual fund also offers good investment opportunities to the investors. Like all investment, they also carry certain risks. The investors should compare the risks and expected yields after adjustment of tax on various instruments while taking investment decisions. The Indian mutual fund industry has witnessed several structural and regulatory reforms.

Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by

An investment also known as a security is a pledge of money from an individual, government, or cooperation that is expected to accrue additional wealth on top of its original dollar amount. An investment can be a long-term or short-term obligation depending on the investor’s goals and/or assets they choose to invest in. The investment decision process is a two-step process which is necessary to make a sound trustable and efficient investment. The first step involves an evaluation of the investment you as the investor are interested in committing money towards, including characteristics of the security (i.e. how it acts in the current market, how the current/future market may react to this investment and possible returns on your investment). Finally, the management of your investment portfolio, including how often it should be revised, how the performance of your securities should be measured (how often they should be measured), and other important aspects of your current investments. Investing revolves around one basic concept, improving our future, investors invest money today to improve their welfare in the future which is why understanding what an investment is and the process of decision making before investing is extremely important.

Walia et al. (2009) evaluated the investor’s perception towards risk-return trade-off for mutual fund services in comparison to other avenues like insurance, government securities and shares. The authors made use of a structured questionnaire to know the experience of existing investors. Selective systematic sampling was taken for consideration. For reliability of the questionnaire, 100 individual investors were selected from different regions of Punjab which included selective investors who were assumed to be having completeknowledge offinancial environment. Age constraint was considered. The authors identified critical gaps in the existing services and found the need of some innovations and added quality dimensions in the existing services. It was concluded that due to stock market volatility movements, most of the investors were holding stock with calculated risk in shape of mutual funds. Age constraint considered in this questionnaire was minimum 18 years. Another objective was to find critical gaps in mutual funds services towards transparency and disclosure practices. Chi-square test was applied on the data collected. So, the