1.Outline the reasons why investors purchase mutual funds.
There are varies reasons why investors purchase mutual funds. Professional management is one of the reasons investors purchase mutual funds. The second reason investors purchase mutual funds is for diversification purposes. Mutual funds are “investment companies that pools the money of many investors” (Hughes, 2009,P.513). “A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to its charter”(CNNMoney). Mutual funds may be go up and down. “And while some mutual funds consistently showed positive returns, many shareholders experienced a roller coaster ride, with prices for mutual fund shares increasing and decreasing over the first seven years of the century” (Hughes, 2009, p.514) Mutual funds closed-end-funds, open-ended funds, and exchange change funds. Investors should know the characteristics of their mutual funds. While closed-ended-funds are given by the investment company open-ended-funds are requested for the investor. For example, with closed-ended-fund the company deals with the funds. Furthermore, open-ended-funds allow the investor to deal with the funds and make request for them.
2.Go online to the site of The Motley Fool (www.fool.com) that deals with investing on the Internet. Analyze this Web site and write a brief report of your findings that are pertinent to the average investor. This website
15. Search online to find information about a stock 's performance, and then provide the information below. You could choose a stock such as Amazon.com or Google, or you could choose another stock that interests you. TIP: Morningstar.com or Yahoo! Finance (finance.yahoo.com) are good sources of stock information.
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.
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
Review of Financial Research Report: This assignment is an analysis of a US publicly-traded company; its common stock could be a prospective investment. The report is due in Week 10, in needs to be at least 5 pages, and it needs to cover the following topics:
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.
In this article, the most crucial part is investing in reskilling current employees. 65% of the respondents will take on this approach with future workforce strategies. Ryan Frishmann, the author of this article, says that he does somewhat agrees with the statement “Hire for character, train for skill.” He believes that if you invest in skill and training that character will come out of it because diligence is required when applying these skills. The article mentions two skills that are very important. These are analytical skills and social skills. Analytical skill is the ability to visualize or solve both complex and uncomplicated problems by making decisions that are sensible given the information. Social skill is any skill
think of a mutual fund as a company that brings together a group of people and invests
Only 25 years ago, there were fewer than 500 funds available. Today, there are over 7,000, with more added every year. There are many advantages to buying mutual funds, but there are disadvantages as well. Mutual funds can offer instant diversification, and diversification reduces risk. For example, funds can reduce risk by spreading it among a large number of investments, if one stock performs badly, its impact on the overall portfolio is lessened. Funds can also reduce risk by investing in different asset classes: stocks (which can include international as well as U.S. stocks), bonds, cash and
Money Market Mutual Funds are investments whose purpose is to provide investors with a safe place to invest. They are
160-161). Once these options are reviewed then one can make that optimal decision as to what type of investment would be the best options to choose from. Next, is bonds which is a financial instrument, that is issued by a corporation or government entity and is required to be paid back; known as an IOU. These will mature overtime and gain face value, and usually come in all types and varieties to choose from; some taking as long as 100 years to reach it maturity date. Lately, is mutual funds and EFT’s, these are securities that are held in different sectors and eliminate any form of risk compared to other investment; known as the closed-end fund or the open-ended fund. So, what is a “close-end fund, is a fixed amount of dividends in a portfolio of assets; where shares of a closed-end funds can be traded among investors much like stocks” (Kelly & Williams, 2017, pg. 163).
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.
A Non-profit Organisation (NPO) is an establishment that uses its funding for the pursuit of a specific purpose such as for a charitable cause (Lorette, 2015). It is different from a for-profit organisation as its objective is to provide greater good to the society rather than to maximise the wealth of its stakeholders. The surplus revenues of an NPO are used for either its expansion, self-preservation or plans and no part of the profit is distributed to its members. NPOs are increasingly starting to operate like traditional business organisations as strategic planning and marketing is imperative for their survival.
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 invest in a number of companies across a broad cross-section of industries and sectors. This diversification reduces the risk because seldom do all stocks decline at the same time and in the same proportion. You achieve this diversification through a Mutual Fund with far less money than you can do on your own.
Have you ever invested money in stocks or maybe received savings bonds as a gift? Those are just two different types of investments that could potentially help with future money plans. It is very smart to start investing money or looking at other ways to invest at a young age to prepare for the future. There are many different types of investments that individuals can use to achieve future savings and investment goals. According to www.fool.com, If you were to invest one hundred dollars as a fifteen-year-old young adult and then receive a ten percent investment rate every year on that initial investment, at the age of sixty-five years old you would turn that one hundred dollars into $1,083. Investing your money rather than saving or spending it is smarter and can help you with your future plans.