Deprecated: mysql_connect(): The mysql extension is deprecated and will be removed in the future: use mysqli or PDO instead in /home/a26f9f83/public_html/articles/includes/config.php on line 159
What is a Mutual Fund? > NetSparsh - Viral Content you Love & Share

What is a Mutual Fund?

Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the "investment adviser."

A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate.

Because it is sometimes hard for investors to become experts on various businesses for example, what are the best steel, automobile, or telephone companies, investors often depend on professionals who are trained to investigate companies and recommend companies that are likely to succeed.

In a managed mutual fund, after investigating the prospects of many companies, the fund's investment adviser will pick the stocks or bonds of companies and put them into a fund. Investors can buy shares of the fund, and their shares rise or fall in value as the values of the stocks and bonds in the fund rise and fall.

Investors may typically pay a fee when they buy or sell their shares in the fund, and those fees in part pay the salaries and expenses of the professionals who manage the fund.

Even small fees can and do add up and eat into a significant chunk of the returns a mutual fund is likely to produce, so you need to look carefully at how much a fund costs and think about how much it will cost you over the amount of time you plan to own its shares. If two funds are similar in every way except that one charges a higher fee than the other, you'll make more money by choosing the fund with the lower annual costs.

Past performance is not a reliable indicator of future performance. So don't be dazzled by last year's high returns. But past performance can help you assess a fund's volatility over time.

Making any sort of investment involved a certain amount of risk so it is always wise to seek the advice of a professional before making any decisions.

You may freely reprint this article provided the author's biography remains intact:

John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the http://www.directonlineloans.co.uk website.

In The News:


Investor's Business Daily

Mutual Fund Managers Like US Small Caps, Foreign Stocks
Investor's Business Daily
September's gain by U.S. diversified stock mutual funds was due largely to President Trump unveiling his proposal for corporate tax reform, says Jeremy Javidi, manager of $620 million Columbia Small Cap Value Fund (CSMIX), whose 6.51% return made it ...


Investor's Business Daily

These Leading Stocks Drove August's Top Inflows To Stock Mutual Funds
Investor's Business Daily
Index stock mutual funds as a group got net inflow in August. Actively run stock funds had outflow. The contrast was a $23.5 billion outflow for actively run funds on average vs. a $5 billion inflow for passive funds, according to Morningstar Direct ...

and more »

Economic Times

Mutual funds pump $12 billion in equities, outshine FPIs' investment
Economic Times
According to the latest data, fund managers bought shares worth a net Rs 76,906 crore ($12 billion) in the first half of the ongoing financial year, while foreign portfolio investor (FPIs) pumped in just Rs 5,278 crore ($810 million) in equities during ...

and more »

Investor's Business Daily

Which Sector Dominates New Stock Buys By Top Fund Managers?
Investor's Business Daily
According to the latest list of new buys by top-performing mutual funds, the leading money managers appear to be focusing on building sector and related stocks like homebuilders NVR (NVR), Toll Bros. (TOL) and KB Homes (KBH), as well as construction ...


Investor's Business Daily

Buying And Selling Stocks Right Are Keys To This Top Mutual Fund's Success
Investor's Business Daily
Victory RS Small Cap Growth Fund (RSEGX) has been a dominant force among small growth stock funds in 2017. RS Investments chief investment officer Scott Tracy and his team have delivered a stellar performance with a focus on risk-adjusted returns.

and more »

Reuters.com

US fund investors regain risk appetite as Dow breaches 23000
Reuters.com
And the bullish mood on stocks did little to shake demand for bonds. Taxable-bond funds took in $4 billion for the week, according to Lipper, and the category has posted outflows just three weeks this year. Low risk money-market funds took in $5.1 billion.


samvat 2074: Samvat 2074: Will retail investors, MFs put more ...
Economic Times
Over Rs 90000 cr worth of mutual fund money entered into stock market during Samvat 2073.

and more »

Hungerford: Investors more Homer Simpson than Spock
Winston-Salem Journal
The best mutual fund manager ever, Fidelity Magellan's Peter Lynch, who averaged 29 percent a year for 13 years from 1977 — 1990, writes: “I visited the first four Home Depots ever built. I sold the stock after it tripled and then it went up another ...


New York Times

Focused Bets on Growth Propel Three Stock Funds
New York Times
They are also willing to double their bets, holding far fewer stocks than the typical actively managed mutual fund. Cindy J. Starke, manager of the Value Line Larger Companies Focused Fund, said that she invested with high conviction, meaning she holds ...


An Unusual Take on Emerging-Markets Stocks - Morningstar
Morningstar.com
The following is our latest Fund Analyst Report for Fidelity Emerging Markets Fund FEMKX. Morningstar.

and more »
Google News

Are You A Stockaholic?

Today's society gives special recognition to alcoholics, sexaholics, binge-aholics, shopaholics,... Read More

Forecasting the Stock Market

Every day I see in the financial section of newspapers... Read More

Paddle Your Canoe

At some time in your life you have been on... Read More

Using Sector Funds to Construct Diversified Mutual Fund Portfolios

'Sector funds are too risky.' 'I doubled my money with... Read More

How To Pick A Mutual Fund

Mutual funds by definition are a mixed bag of stocks,... Read More

Investment Lawyers and Trash Stocks

The trash business in its efforts to cook their books... Read More

Protect Your 401K

Checked your 401K lately? Going back to about a year... Read More

The Secret Art of Backtesting

If you have not back tested your trading system, you... Read More

The Right Mutual Funds For Baby Boomers

If you are a baby boomer, time is not on... Read More

Successful Trading ? Taking Profits - Part 1

So you're started trading, you bought some positions with your... Read More

Whitewater Stock Market

Ever done any whitewater rafting or canoeing? Long periods of... Read More

Never Fall In Love!

Recently I watched my favorite football team lose a vital... Read More

Enron Cure

Let's hope you did not have any of the Enron... Read More

Political Investing

We have two candidates for president that have really different... Read More

Inverted Interest Rates

Inverted interest rates? What's that? Who cares? Even if you... Read More

Picking Mutual Funds to Outperform the Market

With over 6,000 mutual funds available, it may be tempting... Read More

Economists

In today's volatile and confusing stock markets everyone is searching... Read More

Smart Day Trading Strategies to Help You Make Money in the Stock Market

Stock trading can be a very profitable activity. You can... Read More

Analysts - Do They Really Know The Stock Market?

When you become interested in a stock or mutual fund... Read More

Mid-Cap Stocks: Asset Class with an Identity Crisis

Much like the middle child, mid-cap stocks have long struggled... Read More

The Importance of Using Stop Loss Orders When Spread Trading the Financial Markets

A Guide to Using Stop Loss Orders Stop losses are... Read More

Hot Stock Trader: How to Pick Momentum Stocks with Ease and Simplicity

Most stock traders know that momentum trading can be a... Read More

The Three Little Pigs Went to the Stock Market

Three little pigs went to the market to stock up... Read More

What Does it Take to be a Stock Trader?

It takes a total mental commitment to the task. It... Read More

When?

When will the stock market stop going down and start... Read More