Essay Economic Growth and Mutual Funds

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

1. Explain why an individual investor might want to invest in an international growth fund?

For the majority of working Americans, the most common vehicle for owning mutual funds is through their employer's retirement plan, but very few people are making the most of this mainstay of retirement planning.

For the month of December, I was given an assignment consisting of $100,000 and four stocks to invest in. My four stocks were The Ralph Lauren Corp., Visa Inc., Master card Inc. and The Chevron Corp. As stated I was given a month to record my data and I ended up with a total capital gain of $5,518.36 for the one month period for my investments. I have to thank you Mr. Acker, this project was not difficult, but it did confuse me. Receiving this assignment scared me in a way, because I didn’t know what I was getting into. The finance world is scary and tricky, one minute the market is doing good and other days it would be low. While calculating my capital gains or losses I thought I would lose a larger

Moreover, consultants help pension funds satisfy their fiduciary responsibility to plan participants. Their experience and their familiarity with diverse firms’ investment processes, personnel and operations provides them critical oversight and the capability to run more rigorous analysis. Therefore, consultants are able to provide clients with the most informed assistance on their asset allocation and manager selection decisions. The criteria to assess the suitability of different investment strategies should be driven by the client profile in terms of risk tolerance, liquidity requirements, time horizon and asset allocation. Nevertheless, a pension fund consultant is also interested in obtaining returns outperforming their competitors’ investment strategies. Therefore, TW should not only take into account their clients’ profiles (i.e. close-end and open-end funds follow different investment strategies according to their nature) but also their investment strategies performance. 2. Examine the business model of Research Affiliates as a firm and compare Research Affiliates model to that of a more traditional investment advisory firm. Put another way, how does the Research Affiliates make money, who are its customers, what services or products does it sell, how scalable is

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

§  Investment Performance is a complicated subject §  Theoretically correct measures are difficult to construct §  Different statistics or measures are appropriate for different types of investment decisions or portfolios §  Many industry and academic measures are different §  The nature of active management leads to measurement problems

Ever since their creation in 1949 by A. W. Jones, hedge funds have been widely regarded as a unique and luring alternative to investing ones money. Some have seen them as a replacement to the well-known mutual fund- while others believe that they are an entirely new domain. Besides defining both the hedge fund and mutual fund, this paper aims to expose the answer to a deeper question: Are hedge funds REALLY different than a mutual fund, and if so, how and why? By comparing both financial intermediaries in the areas of structure, strategy, and their respective environments, it is my hope that I can unmask any uncertainties that may reside within these financial institutions.

It is a trust which helps investors to achieve their investment goals through the way of funds.

15. Most mutual funds are structured in two ways. The most common structure is a(n) _________ fund, from which shares can be redeemed at any time at a price that is tied to the asset value of the fund. A(n) _________ fund has a fixed number of nonredeemable shares that are traded in the over-the-counter market.

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

The mutual fund concept was simple, allow the un-sophisticated investor access to the strategies of the professional money manager. This was done by pooling small sums of money, as little as $20.00 deposited monthly. In return, the fund company would use professional money managers using professional investment strategies to easily out perform traditional bank savings products.

Economic growth refers to the rate of increase in the total production of goods and services within an economy. Economic growth increases the productivity capacity of an economy, thereby allowing more wants to be satisfied. A growing economy increases employment opportunities, stimulates business enterprise and innovation. A sustained economic growth is fundamental to any nation wishing to raise its standard of living and provide a greater well being for all. Gross domestic product (GDP) is the monetary value of all final goods and services produced over a year. It is the total value of production within the economy. The total value of production is the total value of the final goods or services less the cost of

In today’s day and age, there is a tremendous number of financial vehicles that each and every investor can place their money in. Investors place their money into each of these financial tools in order to make any sort of profit. Obviously, investors do whatever is in their power to make the largest profit possible. Bonds, stocks, and mutual funds are three of these many options for financial growth. Unfortunately, people that may have heard of these do not take advantage of them at all. Bonds, stocks, and mutual funds are relatively simple financial vehicles and people today do not jump on the opportunity to invest. A large majority of people do not explore their options when it comes to allowing their money grow exponentially.

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