Technical Analysis and Mutual Funds. Testing Trading Rules

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

A mutual fund is one of the investment programs that is a pool of funds from many investors, and trade in securities such as diversified holdings, stocks, bonds, mortgages, money market instruments, other securities etc… Professional portfolio managers use the money from the investors to buy securities to meet the funds investment objectives. Investors own units that represent a proportionate share of all of mutual funds assets. Net asset value per unit (NAVPU) is used to process the price for the individual unit of the mutual fund. Net asset value will change is due to the fluctuation (rise or fall) in the market value of the asset held by the funds.

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

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

Collecting, analysing and interpreting financial data has always been the important objectives of the members in the financial markets, ranging from governments, big time billionaire corporations to even the small individual financial analysts. This is because by gaining a keen understanding of the current financial situation in the market, another objective can be pursued, which is forecasting. One of such forecast is regarding investor expectations in the market. Investors often refer to individuals who commits money to investment products with the expectation of financial return. Since most investors become the main pillars of finance for corporations, by gaining an understanding of

Experienced investors prefer Investment Companies that invest in their fund, therefore, is important that the “Investment Company” reinvests revenue in the fund.

A mutual fund is a collection of diversified investments combined into one fund chosen by the investment company. The mutual fund is classified by what type of funds are included within the fund. When an investor choses to invest in a mutual fund, he or she is adding their money to a pool of other investors money. This money is used to invest in a number of different securities based on specific investment goals. Investment companies choose to include many different stocks, as well as bonds or money market instruments in order to reduce risk and completely diversify the fund (Tyson, 2007). The investor owns shares of the funds rather than owning the underlying investments (Morris & Morris, 2005).

Mutual funds are pools of money. Money from many different individual investors can be pooled with money from, say, the retirement fund of a global corporation.

In business or even in life, the quality of management plays a direct role on the success of the venture. The quality of management offered for a mutual fund is no different. In the investment world, mutual funds are either actively managed or indexed. __Actively managed funds__ uses more human capital to actively manage a fund 's portfolio, they use expertise and research to determine what securities to buy or sell. __Indexed funds__ are the opposite of active,

Funds: Fund managers buy other securities that earn interest or capital gains, leading to increase in the share price of the fund. Investors receive increase in share price as well as interest sometimes. Examples include mutual funds, hedge funds, real estate investment trusts (REIT), exchange traded funds (ETF) etc.

A mutual fund is a group of stocks and/or bonds put together, to be invested in as one, and similarly to stocks, investors own shares, which signify a partial ownership on the fund.

The fund manager is also known as the fund sponsor or fund management company. The buying and selling of the fund

Financial markets are constantly becoming more efficient by providing more promising solutions to the investors. Being a part of financial markets although mutual funds industry is responding very fast by understanding the dynamics of investor’s perception towards rewards, still they are continuously following this race in their endeavor to differentiate their products responding to sudden changes in the economy. Thus, it is high time to understand and analyse investor’s perception and expectations, and unveil some extremely valuable information to support financial decision making of mutual funds. Financial markets are becoming more exhaustive with financial products seeking new innovations

In this scheme size of the fund is not predetermined as entry to or exit from the fund is open to investor who can buy or sell its securities to the fund at any time. This characteristic imparts greater liquidity to the units of these funds along with the pre-determined repurchase price based on declared Net Asset Value. Portfolio mix of such schemes consists of actively traded securities in the market, preferably equity shares. As investors can anytime withdraw from the fund, therefore, the management of such funds is quite tedious.

Mutual fund is a fund that exhibitions as a wander vehicle, pools the trusts of different theorists to place assets into distinctive budgetary instruments like stocks, securities, debentures, et cetera engaging monetary experts to achieve their money related targets. SEBI (Mutual Funds) Regulation 1993, describes Mutual Fund as "Normal Fund intimates a trust secured as a trust by a sponsor to raise money by the trustee through the offer of units to the all inclusive community under one or more plans for placing assets into securities according to these regulations".