Advantages And Disadvantages Of Mutual Fund

If we consider with other investment options equity mutual fund is provide maximum benefits to the investors. Asset Management Company that properly invest it’s client fund into the security market as per their objectives which has defined in their prospectus. The fund manager has proper team to research so to make proper planning for investment with strategy and to succeed the highest market return.

Following 80 years of the creation date, or prior if the trustee chooses, the trust will "vest" or stop. This lead does not have any significant bearing to

An applicant is given a duration of 30 days after the applucation is approved. Within this period the subject is required to make a reasonable amount of investment. After the final approval of the application, and investment the subject along

The advantages of the Mutual funds are professionally managed by portfolio management, and attempt to generate income such as capital gains on sales, dividends on stocks or interest on bonds for the investors. Most of Investors purchase in mutual funds due to the lack of time or expertise to manage their own portfolios. Investing in a mutual fund is a relatively inexpensive to a small investor to get a full-time portfolio manager to control or monitor their investments.

A stock market is a place where stocks or shares are bought or sold. An example of a stock market is New York stock exchange and Nigerian stock exchange.

guarantee.” In this instance, the guarantee takes the form of a European put option (called a “Right”

In this paper I will outline the fourteen financial terms and roles for the following words finance, efficient market, primary market, secondary market, risk, security, stock, bond, capital, debt, yield, rate of return, return on investment and cash flow and identify their roles in finance in today’s business world.

Ch.1 financial intermediation results from economies of scale and the specialization of financial transactions. (banks, inv. companies [mutual & pension funds], insurance companies, credit unions, brokerage firms, investment banks). Inv. banks assist firms in raising capital, create the market for innovative new securities that meet the risk and return demand (CMOs, collateralized mortgage obligations – derivative security that separates the cash flows of a mortgage pool into different classes with different maturities and risks). risk and return are the most important characteristics of financial assets. Another is tax. (high tax-bracket investors would, other things equal, would prefer tax-exempt securities [municipal bonds]).

After some time researching I found a really well explained definition that says, “The stock market is the market in which shares of publicly held companies are issued and traded either through exchanges or over-the-counter markets Also known as the equity market the stock market is one of the most vital components of a free-market economy, as it provides companies with access to capital in exchange for giving investors a slice of ownership in the company. The stock market makes it possible to grow

This means that the payments that are made at the end of every period are called ordinary annuity. This is because ordinary annuity is the usual state of affairs. Under normal circumstances all annuities are paid at the end of the period.

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

A, brief overview of the different vehicles available to utilize when investing. The financial market is where investors trade commodities, stocks, mutual funds, stocks, bonds, and traditional bank accounts which all can accrue interest. The different options provide very different options and different levels of risk. One can invest in something on the conservative side, moderate or be aggressive. Depending on the type of investor you

Since investors cannot invest in a gauge of the hedge fund universe, it is crucial to focus on the performance of individual funds. Do individual hedge funds beat the market? Do they outperform mutual funds? Academic literature on the performance on hedge funds does not provide a clear answer as to whether hedge funds outperform the market. Moreover, there are a number of challenges facing researchers wanting to explore this issue. Firstly, due to hedge fund’s unregulated nature, unbiased data is hard to retrieve since only a small number of hedge funds disclose their performance voluntarily. This problem is referred to as the survivorship bias and refers to how the data available to researchers might be skewed since only well performing hedge funds have the incentive to voluntarily declare their earnings. Therefore, the data available will be missing those hedge funds that have been shut down or liquidated (Ackerman, McEnally and Ravenscraft, 1999).The range of

Certificates: Under a close ended scheme, an investor is entitled to receive shares or unit certificates allotted to him within a period of 10 weeks from the date of disclosure of subscription. Under an open ended scheme this period is six weeks from the date of disclosure of initial offer.