1 / 0

Mutual Funds

Mutual Funds. What are they?. An investment in which investors pool their money to buy stocks, bonds, and other securities selected by professional managers who work for an investment company . What is included in mutual funds: Mostly Stocks and Bonds

nora
Download Presentation

Mutual Funds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mutual Funds

  2. What are they? An investment in which investors pool their money to buy stocks, bonds, and other securities selected by professional managers who work for an investment company. What is included in mutual funds: Mostly Stocks and Bonds Does include other investments: Real Estate, Certificates of Deposit (CD’s), futures, options, etc.
  3. Types Stock Funds Growth Fund, Value Fund, Blend Fund, International Fund Blue-chip, Emerging market funds, energy funds, Foreign Blue-chip, U.S. blue-chip, Eco-friendly funds, penny stock funds Also can choose from small-cap, medium-cap, and large-cap fund The smaller the cap the larger the risk, larger cap = less risky Sector/Industry Funds and Index Funds S&P 500 Fund, DJI Fund, Telecommunications fund, medical fund Bond Funds (Income Funds) Invest in different bonds. Where you get paid interest at set periods of time Taxable bonds and non-tax bonds Less risky than stocks, but more risky than money market funds Other Asset allocation Fund Combination of Stocks/Bonds/Other funds Money Market Funds Money market accounts, CD’s
  4. Ways to make money off them Same as stocks If price of stock invested in goes up, so does the value of the mutual fund Dividends Interest from bonds (Bonds are like you giving out a loan where you expect interest) If the fund sells securities that have increased in price, the capital gain will be split and distributed evenly to its investors. Example: A real estate mutual fund sells property for more money it bought it for.
  5. Fees SOMEONE INVESTING FOR YOU COSTS MONEY!!!! Management Fees/Ongoing yearly fees Pay your broker an ongoing annual fee Redemption Fee Pay your broker whenever they buy/sell for you Studies have proven higher expense funds do not, on average, perform better than lower expense funds. Fees are very confusing when it comes to mutual funds Sit down with your broker and have them compare fees when comparing what mutual fund to buy Buying online make sure you notice how much a fee is and compare it to other investment.
  6. Key Mutual Fund Terms Net Asset Value (NAV)-A mutual fund's price per share  No Load Fund- A mutual fund in which shares are sold without a commission or sales charge. Load Fund- A mutual fund that comes with a sales charge or commission. *Make sure to look at the Vocabulary sheet posted on edmodo
More Related