Mutual funds?
can anyone plz tell me in simple terms what mutual funds are, how to invest in them and make money out of them. I am from India and I am a post graduate student.
Help will be appreciated !!!!!!!!!
Tags: graduate student, india, money, mutual funds, post graduate, student help
A mutual fund is a pool of money that is invested.
It is usually managed by a company that is experienced in investments, and they charge a percentage of the gross as an annual management fee. They often have minimum investments, sales fees, transaction fees, and early withdrawal fees, but each is different.
I only buy mutual funds with no sales fees (aka loads), and no transaction fees, and low management fees (less than 1% per year).
Hi,
You can visit http://stocksguide.checkouttoday.info to get your query on mutual funds well clarified. Good luck!
Here is an Indian web site on mutual funds. At this site you can find out about all of the mutual funds available to you, where to buy them, the minimum investment amount, the expenses they charge, and the historical returns they have made in the past.
http://www.valueresearchonline.com/funds/default.asp
Mutual funds do what you and I cannot. They invest millions of dollars in hundreds of companies, thereby spreading the risk. If you buy and hold them for many years, the odds are you will make $$$. That’s the good news. When the market goes up, funds do not rise as fast, and likewise don’t fall as fast when down.
The drawback is it is a slow process. You must have patience. Also there are a myriad of funds, gold funds, large cap, small cap, growth, dividend plays. Choose what you can live with.
Hello,
A good place to start would be to look at a mutual fund tutorial on the Investopedia.com website. Here is the link:
http://www.investopedia.com/university/mutualfunds/default.asp
Investopedia also has some other good investing tutorials.
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net
Mutual Funds- are a family of either Stocks, Bonds, Cash (short term assets) that are all trying to make us money. The beauty is that there are hundreds of funds under one umbrella so if one fails no big deal. If 15 fail no big deal. These funds are determined by a manager or two who work exclusively with a particular fund.
Stock Fund, Bond Fund, Money market Fund.
Since they are managing the funds YOU don’t have to keep up with all the speculation that is happening daily and hourly-who has time.
Next, You pick the funds you want based on your own tolerance of RISK. If you are very conservative maybe you would have only a small portion of Stock Funds Vs less risk Bond Funds.
Most all of the company 401K plans are made up of Mutual Funds.
Example. The Vanguard Co has one mutual fund called The Total Stock Market Fund Index. This fund includes ALL stocks in a particular Index–that way you don’t have to figure out what kind of stocks you want or how big a company you want in your fund. This fund has them all. So over a long time frame you will have a good increase in value if you hold all the stocks. 9-11% over time on the average.