Asset Value Of A Mutual Fund Essay

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

Mutual funds represent a portion of its holdings. It’s buying into certain products sold by the company. An example is investing in beef products. Anything that occurs with the meat products can affect the amount of money earned. Should a recall happen, people that

MMDA’s and CDs are typically less risky than market mutual funds. Market mutual funds will gain more interest but hold higher risks. Using CD as a short term savings will assure an investors principle

Net Asset Value gauges performance by dividing total assets minus liabilities by the funds outstanding shares and gives the mutual funds price per share.

A mutual fund manager is a person who actively buys or sells and sometimes both funds. They are experienced in implementing a funds strategy used for investing and manages its trading activities as well as the portfolio. Choosing whether or not to invest in Ford Motor Company will take the use of a SWOT analysis and learning about the stakeholders of the company.

Money Market Mutual Funds are investments whose purpose is to provide investors with a safe place to invest. They are

“20 MAJOR ADVANTAGES OF INVESTING IN MUTUAL FUNDS” by Austin Pryor and “9 Disadvantages of Investing in Mutual Funds” by InvestorGuide Staff both discuss whether or not mutual funds would be worth investing in or not. The article by Austin Pryor is more convincing than the article by InvestorGuide Staff because of the fact that Austin Pryor was able to list over twice as much advantages to disadvantages and he also has more logic in his article when compared to InvestorGuide Staff’s articles.

Hedge funds feature returns different from those of mutual funds. The different trading strategies and investment styles are amongst a few factors that explain the difference (Boyson, 2010). The institutional and individual investors create a common pool of funds and employ professional managers to manage the fund. Ideally the manager is compensated from two sets of fees: management fee and performance fee. They impose a management fee based on the size of the asset managed, usually at the rate between 1-2%. A performance fee will be imposed at the rate between 20-30% of the returns on the investments made (lecture notes).

1. Fund manager are expertise in the technology industry and thus the fund deals with technology driven companies which fund managers are comfortable in prediction of individual stock related risk and return and they are able to evaluate the technology field and pick up outperforming and positive alpha stocks in the technology field accurately.

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

Mutual funds gather money from several investors to buy and sell stocks, bonds, and others. In addition, a mutual fund is important for the investor, who is new in investing, or too busy to do a research on many companies individually. Mutual funds allow investors to invest in many companies with a single acquisition. Therefore, acquiring a mutual fund is a great method to diversify the investments portfolio. However, the price of mutual fund will decline, if the industry that investor focuses on, is performing badly. In addition, mutual funds method is less risky than an individual stock.

The primary benefits are that a person can save on the taxes by investing in these instruments, and at the same time, they also stand to get good returns on their investments. Many economic surveys clearly suggest that the mutual funds yield better benefits, and are seen to perform a lot better when compared to the stocks or the bonds.

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