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.A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.^ The investment company then invests this collective pool in a variety of stocks, bonds and/or other securities.
  • Mutual funds as part of your investment strategy – Northwestern Mutual 12 January 2010 0:00 UTC www.northwesternmutual.com [Source type: News]

^ The idea behind a mutual fund is simple: Many people pool their money into a fund, which invests in various securities, generally stocks and/or bonds .

^ Mutual funds, by nature, are generally less of a risk that many other stocks.

[1] .The mutual fund will have a fund manager that trades the pooled money on a regular basis.^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

^ Mutual funds are professionally managed investments.
  • Mutual Fund Analysis | InvestingFirstSteps.com 12 January 2010 0:00 UTC investingfirststeps.com [Source type: FILTERED WITH BAYES]

^ The fund’s mutual fund manager has a strong reputation.
  • How To Find A Good Mutual Fund 12 January 2010 0:00 UTC investingtoolkit.com [Source type: General]

.The net proceeds or losses are then typically distributed to the investors annually.^ The net proceeds or losses are then typically distributed to the investors annually.

.Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the U.S. as mutual funds; unit investment trusts (UITs); and closed-end funds.^ Mutual funds are professionally managed investments.
  • Mutual Fund Analysis | InvestingFirstSteps.com 12 January 2010 0:00 UTC investingfirststeps.com [Source type: FILTERED WITH BAYES]

^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ You can find the definition of "open-end company" in Section 5 of the Investment Company Act of 1940 .
  • Mutual Funds 12 January 2010 0:00 UTC www.sec.gov [Source type: News]

.Similar funds also operate in Canada.^ An Index fund operates very similar to a mutual fund, except is it not actively managed.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

.However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS).^ Types of Mutual Funds Mutual funds can be classified by their investment objectives and the types of securities they hold.

^ Evergreen Mutual Funds is one such company.

^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

Contents

History

.Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21, 1924, and, after one year, it had 200 shareholders and $392,000 in assets.^ The first such fund was Massachusetts Investors Trust, founded on March 21, 1924, which had, after one year, 200 shareholders and $392,000 in assets.
  • Margin.com - The Mutual Funds Advantage 12 January 2010 0:00 UTC www.margin.com [Source type: News]

^ Known as Massachusetts Investors' Trust, the fund went public in 1928 and eventually led to the founding of MFS Investment Management firm.

^ Manulife Mutual Funds now manages AIC Funds in Canada and AIC-related Portland Investment Counsel will continue to act as fund sub-advisor for Manulife Mutual Funds.
  • Manulife AIC Funds 12 January 2010 0:00 UTC www.aic.com [Source type: General]

The entire industry, which included a few closed-end funds, represented less than $10 million in 1924.
.The stock market crash of 1929 hindered the growth of mutual funds.^ Mutual funds generally invest in Stocks, Bonds, and Money Markets.
  • Mutual Fund Investing, 401K Rollover, and Retirement Investing Advice 12 January 2010 0:00 UTC www.mutual-funds-investing.com [Source type: FILTERED WITH BAYES]

^ Can mutual fund managers pick stocks?
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

^ Mutual Funds are probably the best way to invest in the Stock Market.
  • Mutual Funds and Exchange Traded Funds ETF - Rebound Trading Systems 12 January 2010 0:00 UTC www.reboundtrading.com [Source type: News]

.In response to the stock market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934.^ In response to the crash, Congress passed the Securities Act of 1933 and a year later the Securities Exchange Act of 1934.

^ Stock markets everywhere have crashed.
  • The 25 Best Mutual Funds - Kiplinger.com 12 January 2010 0:00 UTC www.kiplinger.com [Source type: General]

^ Mutual funds are also subject to the Securities Act of 1933 and the Securities Exchange Act of 1934.
  • Mutual Funds 12 January 2010 0:00 UTC www.sec.gov [Source type: News]

.These laws require that a fund be registered with the U.S. Securities and Exchange Commission (SEC) and provide prospective investors with a prospectus that contains required disclosures about the fund, the securities themselves, and fund manager.^ The prospectus contains this and other information about the Funds.

^ The Fund’s prospectus contains this and other information about the Fund.

^ The fund's prospectus contains this and other information about the fund.
  • Rydex SGI :: Mutual Funds Home 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: News]
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

.The Investment Company Act of 1940 sets forth the guidelines with which all SEC-registered funds today must comply.^ The Fund are not registered in all states.
  • Catalyst Fund - Catalyst Mutual Fund 12 January 2010 0:00 UTC catalystmutualfund.com [Source type: FILTERED WITH BAYES]

^ Other funds must be purchased directly from the issuing investment company.
  • Finance: Investing Guide » Mutual Funds 12 January 2010 0:00 UTC maagblog.ysu.edu [Source type: FILTERED WITH BAYES]

^ Both mutual funds are registered under the Investment Company Act of 1940.

.With renewed confidence in the stock market, mutual funds began to blossom.^ Can mutual fund managers pick stocks?
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

^ An emerging market fund is a mutual fund that invests in stocks from emerging markets.
  • Mutual Funds Types (Money & Careers: Stock Markets) 12 January 2010 0:00 UTC www.videojug.com [Source type: FILTERED WITH BAYES]

^ Mutual Funds are probably the best way to invest in the Stock Market.
  • Mutual Funds and Exchange Traded Funds ETF - Rebound Trading Systems 12 January 2010 0:00 UTC www.reboundtrading.com [Source type: News]

.By the end of the 1960s, there were approximately 270 funds with $48 billion in assets.^ As of today, there is approximately $25 trillion dollars invested in Mutual Funds around the world.

^ Investors pumped a net $129 billion into foreign funds in 2007 through November, lifting total assets to $1.
  • Articles about Mutual Funds - Los Angeles Times - Page 3 12 January 2010 0:00 UTC articles.latimes.com [Source type: News]

^ This topic cover mutual fund investing, including stock funds, bond funds, money market funds, asset allocation funds, balance funds, sector funds, index funds, closed-end funds, and open-end funds.
  • Mutual Funds Investing - Business Exchange 12 January 2010 0:00 UTC bx.businessweek.com [Source type: FILTERED WITH BAYES]

.The first retail index fund, First Index Investment Trust, was formed in 1976 and headed by John Bogle, who conceptualized many of the key tenets of the industry in his 1951 senior thesis at Princeton University[2].^ Who decides which investments are selected for the fund?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ Many mutual funds have a policy to direct a particular percentage of their net assets towards investment in bonds of below investment grade but which can yield high returns.

^ Mutual funds are pools of money from many individual investors that are managed by professional fund managers who make investments in stocks, bonds, and other instruments according to the fund's defined objective.
  • The Different Types of Mutual Funds - Associated Content - associatedcontent.com 12 January 2010 0:00 UTC www.associatedcontent.com [Source type: General]

.It is now called the Vanguard 500 Index Fund and is one of the world's largest mutual funds, with more than $100 billion in assets.^ Learn more about Mutual Funds .
  • Standard Life Canada - Individual Investments 12 January 2010 0:00 UTC www.standardlife.ca [Source type: News]

^ Is there an advantage to investing in more than one Mutual Fund?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ What are index mutual funds?
  • » Index Mutual Funds vs. Exchange Traded Funds (ETFs) @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

.A key factor in mutual-fund growth was the 1975 change in the Internal Revenue Code allowing individuals to open individual retirement accounts (IRAs).^ Mutual Funds, IRA and 401K Information .
  • Mutual+funds on Shine 12 January 2010 0:00 UTC shine.yahoo.com [Source type: General]

^ A mutual fund account can be similar to a bank account.
  • Mutual Funds 101 12 January 2010 0:00 UTC www.fairmark.com [Source type: General]

^ Mutual of America 2030 Retirement Fund .

.Even people already enrolled in corporate pension plans could contribute a limited amount (at the time, up to $2,000 a year).^ Workers and their spouses can contribute up to $5,000 each year to their IRAs.
  • Investors.com - New Roth IRA Edge For The Wealthy 12 January 2010 0:00 UTC www.investors.com [Source type: General]

^ This act allowed individuals who were already in a corporate pension plan to contribute up to $2,000 a year to a mutual fund.

^ The investment objectives of the Lincluden Balanced Fund are consistent with the objectives of long term oriented pension plans: to earn a rate of return that handsomely exceeds the inflation rate, while at the same time limiting the downside risk in declining market environments.
  • Mutual Fund Investors | Lincluden 12 January 2010 0:00 UTC www.lincluden.com [Source type: General]

.Mutual funds are now popular in employer-sponsored "defined-contribution" retirement plans such as (401(k)s) and 403(b)s as well as IRAs including Roth IRAs.^ Tax planning tips - Mutual Funds .
  • Learning Centre: Canadian Mutual Funds Information 12 January 2010 0:00 UTC fiscalagents.com [Source type: FILTERED WITH BAYES]

^ So mutual funds are well diversified.
  • What are mutual funds? How can you invest in mutual funds? 12 January 2010 0:00 UTC www.invest.us [Source type: General]

^ Mutual Funds, IRA and 401K Information .
  • Mutual+funds on Shine 12 January 2010 0:00 UTC shine.yahoo.com [Source type: General]

.As of October 2007, there are 8,015 mutual funds that belong to the Investment Company Institute (ICI), a national trade association of investment companies in the United States, with combined assets of $12.356 trillion.^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

^ Mutual funds are professionally managed investments.
  • Mutual Fund Analysis | InvestingFirstSteps.com 12 January 2010 0:00 UTC investingfirststeps.com [Source type: FILTERED WITH BAYES]

^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

[3] .In early 2008, the worldwide value of all mutual funds totaled more than $26 trillion.^ Learn more about Mutual Funds .
  • Standard Life Canada - Individual Investments 12 January 2010 0:00 UTC www.standardlife.ca [Source type: News]

^ Is there an advantage to investing in more than one Mutual Fund?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ NAV of all the Mutual Funds are available.
  • Mutual Fund 12 January 2010 0:00 UTC www.pnbindia.com [Source type: FILTERED WITH BAYES]

[4]

Usage

.Since the Investment Company Act of 1940, a mutual fund is one of three basic types of investment companies available in the United States.^ Evergreen Mutual Funds is one such company.

^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

[5]
.Mutual funds can invest in many kinds of securities.^ Analyzing Mutual Funds Mutual fund investing can be overwhelming.

^ There are many kinds of stock funds.
  • Money101 Lesson 6: Funds 12 January 2010 0:00 UTC money.cnn.com [Source type: News]

^ Mutual Funds: Is it the right time to invest?
  • Mutual Funds 12 January 2010 0:00 UTC www.buzzle.com [Source type: FILTERED WITH BAYES]

.The most common are cash instruments, stock, and bonds, but there are hundreds of sub-categories.^ However, there are a few simple ways you can help reduce the risk: Build a Balanced Portfolio: a balanced portfolio with investments in a variety of major investment classes (stocks, bonds, and cash) can help keep you diversified.
  • Getting Started with Mutual Funds 12 January 2010 0:00 UTC www.sharebuilder.com [Source type: General]

^ The two most common types of mutual funds are equity funds that invest primarily in common stocks and fixed-income funds or "bond funds" that typically invest in bonds or money market securities.
  • UniBank - Mutual Funds 12 January 2010 0:00 UTC www.unibank.com [Source type: News]

^ It is a firm that is professionally managed using investors money to invest in bonds, stocks, short-term money instruments and other such securities.

.Stock funds, for instance, can invest primarily in the shares of a particular industry, such as technology or utilities.^ Invest in a particular sector or industry.
  • Mutual Funds 12 January 2010 0:00 UTC www.markrosa.com [Source type: FILTERED WITH BAYES]

^ Funds of funds are mutual funds that primarily hold and invest in shares of other mutual funds.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ U.S. stock funds did not share in the bounty.
  • Mutual Funds Stage Big Third-Quarter Comeback - Financial Planning 12 January 2010 0:00 UTC www.financial-planning.com [Source type: News]

.These are known as sector funds.^ These are also known as "Bond Funds".

^ Market timing – Another feature of some of these funds is the ability of the fund manager to increase or decrease the allocation of either stocks, fixed income or cash – this is known as market timing .

^ We prefer these Fidelity sector funds for the following reasons: .
  • Fidelity Mutual Funds Including Fidelity Sector Funds 12 January 2010 0:00 UTC www.alphaprofit.com [Source type: FILTERED WITH BAYES]

.Bond funds can vary according to risk (e.g., high-yield junk bonds or investment-grade corporate bonds), type of issuers (e.g., government agencies, corporations, or municipalities), or maturity of the bonds (short- or long-term).^ A fund’s investment objectives, risks, charges and expenses should be considered carefully before investing.
  • John Hancock Funds - Mutual Funds - Daily Prices 12 January 2010 0:00 UTC www.jhfunds.com [Source type: Reference]

^ The public sector funding is the type of funding given from the government directly.
  • Types of Mutual Funds : What Is Ordinary Dividends, Define Money Market Funds 12 January 2010 0:00 UTC todaymutualfunds.com [Source type: News]

^ Free Money Investment Opportunities About Archives Contact ← Different Types of Short Term Investments .

.Both stock and bond funds can invest in primarily U.S. securities (domestic funds), both U.S. and foreign securities (global funds), or primarily foreign securities (international funds).^ You can invest in stocks or bonds also.
  • Mutual Funds? | Crosby Capital Partners 12 January 2010 0:00 UTC crosbycp.com [Source type: General]

^ A foreign mutual fund is a mutual fund that invests in non-US stocks.
  • Mutual Funds Types (Money & Careers: Stock Markets) 12 January 2010 0:00 UTC www.videojug.com [Source type: FILTERED WITH BAYES]

^ Global bond funds hold either U.S. or foreign bonds.
  • BALANCE: Mutual Funds 12 January 2010 0:00 UTC www.balancepro.net [Source type: FILTERED WITH BAYES]

.Most mutual funds' investment portfolios are continually adjusted under the supervision of a professional manager, who forecasts cash flows into and out of the fund by investors, as well as the future performance of investments appropriate for the fund and chooses those which he or she believes will most closely match the fund's stated investment objective.^ As with any investment, a fund's past performance is no guarantee of its future success.
  • Investor Tips: Mutual Fund Investing 12 January 2010 0:00 UTC www.sec.gov [Source type: FILTERED WITH BAYES]

^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

^ But the small cap stocks the fund manager chooses are ones he believes will perform best.
  • Stock Investment Resource: Stock Market Investing Tips - Are Mutual Funds For You? 12 January 2010 0:00 UTC www.bullreturns.com [Source type: News]

.A mutual fund is administered under an advisory contract with a management company, which may hire or fire fund managers.^ Mutual funds will have a fund manager to manage the investments from time to time.
  • MutualFunds | Mutual Funds in india | Mutual Funds Investment in india | Mutual funds Types 12 January 2010 0:00 UTC mutualfunds9.com [Source type: News]

^ The fund’s mutual fund manager has a strong reputation.
  • How To Find A Good Mutual Fund 12 January 2010 0:00 UTC investingtoolkit.com [Source type: General]

^ By in large this may be true, but it depends on the Mutual Fund and in particular the fund manager.
  • Know Your Mutual Funds 12 January 2010 0:00 UTC www.shjux.com [Source type: General]

.Mutual funds are subject to a special set of regulatory, accounting, and tax rules.^ Tax planning tips - Mutual Funds .
  • Learning Centre: Canadian Mutual Funds Information 12 January 2010 0:00 UTC fiscalagents.com [Source type: FILTERED WITH BAYES]

^ Sell Mutual Fund Tax 1099b .
  • Types of Mutual Funds : What Is Ordinary Dividends, Define Money Market Funds 12 January 2010 0:00 UTC todaymutualfunds.com [Source type: News]

^ Many mutual fund rates do not account for shareholder tax liability.
  • UniBank - Mutual Funds 12 January 2010 0:00 UTC www.unibank.com [Source type: News]

.In the U.S., unlike most other types of business entities, they are not taxed on their income as long as they distribute 90% of it to their shareholders and the funds meet certain diversification requirements in the Internal Revenue Code.^ Shareholders are taxed on the distributions paid by the fund in December.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ The fund also distributes dividend and interest income.
  • Investment Management and Mutual Fund Investing 12 January 2010 0:00 UTC www.swimllc.com [Source type: FILTERED WITH BAYES]

^ A mutual fund may hold securities, such as stocks or bonds, from dozens or even hundreds of issuers, and each seeks to achieve a certain objective, such as long-term growth of capital, income or a combination of the two.
  • Mutual Funds and Mutual Funds Investment Advice | Ameriprise Financial 12 January 2010 0:00 UTC investment.ameriprise.com [Source type: News]

.Also, the type of income they earn is often unchanged as it passes through to the shareholders.^ Dividends : If the fund receives dividends from stocks, interest from bonds, or other investment income, it distributes those earnings to shareholders as a dividend according to the terms outlined in its prospectus.
  • Mutual Funds 12 January 2010 0:00 UTC www.aarp.org [Source type: General]

^ Interest and stock dividends earned by the funds portfolio are passed to shareholders as dividends, while capital gains are passed as capital gains distributions.

^ For organizations that pass through these gains to the shareholders, the gains are taxable at the individual’s tax rate instead of the corporate tax rate.

.Mutual fund distributions of tax-free municipal bond income are tax-free to the shareholder.^ Tax planning tips - Mutual Funds .
  • Learning Centre: Canadian Mutual Funds Information 12 January 2010 0:00 UTC fiscalagents.com [Source type: FILTERED WITH BAYES]

^ Taxable bond funds -- Bond mutual fund in which interest income is taxed by Uncle Sam.

^ Distribution - Payments made to shareholders by the mutual fund.

.Taxable distributions can be either ordinary income or capital gains, depending on how the fund earned those distributions.^ By law, funds have to distribute any taxable gains from investing to shareholders each year.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ The gains are taxable as ordinary income.
  • Variable Annuities vs Mutual Funds 12 January 2010 0:00 UTC freeannuityrates.com [Source type: FILTERED WITH BAYES]

^ How do growth and income funds compare?
  • Mutual Fund Calculators - WalletPop 12 January 2010 0:00 UTC www.walletpop.com [Source type: General]

.Net losses are not distributed or passed through to fund investors.^ The net proceeds or losses are then typically distributed to the investors annually.
  • Mutual Funds 101 | HOME | Understanding Mutual Fund Basics and Pitfalls 12 January 2010 0:00 UTC mutualfunds101.com [Source type: News]
  • Mutual Funds 12 January 2010 0:00 UTC www.nydailynews.com [Source type: General]

^ Most funds also pass on these gains to investors in a distribution.

^ Investors pumped a net $129 billion into foreign funds in 2007 through November, lifting total assets to $1.
  • Articles about Mutual Funds - Los Angeles Times - Page 3 12 January 2010 0:00 UTC articles.latimes.com [Source type: News]

Net asset value

.The net asset value, or NAV, is the current market value of a fund's holdings, less the fund's liabilities, usually expressed as a per-share amount.^ The daily value (known as the Net Asset Value) is calculated as a function of the current market value of the holdings divided by the number of shares outstanding.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ At net asset value .

^ The NAV per share is calculated by dividing the NAV by the number of fund shares outstanding .
  • Investing in Mutual Funds - Online Trading with Firstrade 12 January 2010 0:00 UTC www.firstrade.com [Source type: FILTERED WITH BAYES]

.For most funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day.^ Consider index funds or exchange-traded funds.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Most of the new funds were exchange traded funds, whose shares trade on the stock exchanges, as stocks do.
  • Morningstar: Just 37 new mutual funds in December - USATODAY.com 12 January 2010 0:00 UTC www.usatoday.com [Source type: News]

^ Then try ETF (exchange traded fund).
  • Mutual Funds Basics | Personal Finance - Yahoo! India Finance 12 January 2010 0:00 UTC in.finance.yahoo.com [Source type: General]

.The public offering price, or POP, is the NAV plus a sales charge.^ Performance at POP reflects sales charges.
  • John Hancock Funds - Mutual Funds - Daily Prices 12 January 2010 0:00 UTC www.jhfunds.com [Source type: Reference]

^ The mutual fund also may offer large-purchase breakpoint discounts from the front-end sales charge for Class A shares.
  • FINRA - Investor Alert - Understanding Mutual Fund Classes 12 January 2010 0:00 UTC www.finra.org [Source type: FILTERED WITH BAYES]

^ Class R shares were first offered on May 15, 2002, and are sold without a sales charge.

.Open-end funds sell shares at the POP and redeem shares at the NAV, and so process orders only after the NAV is determined.^ In general, open-end funds redeem shares at the current net asset value (NAV).
  • Investing in Mutual Funds - Online Trading with Firstrade 12 January 2010 0:00 UTC www.firstrade.com [Source type: FILTERED WITH BAYES]

^ The typical mutual fund is an open-end fund.
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ What are open-end funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

.Closed-end funds (the shares of which are traded by investors) may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively.^ Also known as share price.

^ This means that fund's closing price-per-share for the day is $30.
  • Mutual Funds 12 January 2010 0:00 UTC www.markrosa.com [Source type: FILTERED WITH BAYES]

^ Closed End funds .
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

.If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by the different classes.^ These fees and expenses can vary widely from fund to fund or fund class to fund class.
  • FINRA - Investor Alert - Understanding Mutual Fund Classes 12 January 2010 0:00 UTC www.finra.org [Source type: FILTERED WITH BAYES]

^ Funds charge investors fees and expenses.
  • Investor Tips: Mutual Fund Investing 12 January 2010 0:00 UTC www.sec.gov [Source type: FILTERED WITH BAYES]

^ Fees and expenses paid on bond funds have declined by a similar amount.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

.Some mutual funds own securities which are not regularly traded on any formal exchange.^ Some possible origins of mutual funds are: .
  • History of Mutual Funds (Investment Trusts) 12 January 2010 0:00 UTC www.financescholar.com [Source type: News]

^ An exchange-traded fund has several advantages over traditional mutual funds.
  • Mutual Funds Guide - Kiplinger.com 12 January 2010 0:00 UTC www.kiplinger.com [Source type: General]

^ A fund manager regularly trades the pooled money of a mutual fund.
  • Eliminate Debt & How to Determine if Mutual Funds Should Be a Part of Your Savings Strategy 12 January 2010 0:00 UTC www.eliminatedebt.org [Source type: General]

.These may be shares in very small or bankrupt companies; they may be derivatives; or they may be private investments in unregistered financial instruments (such as stock in a non-public company).^ They also differ in the investment stage of companies.
  • TD Waterhouse - Products & Services - Investing - Mutual Funds 12 January 2010 0:00 UTC www.tdwaterhouse.ca [Source type: News]

^ The shares purchased may be in open- or closed-end investment companies.
  • Finance: Investing Guide » Mutual Funds 12 January 2010 0:00 UTC maagblog.ysu.edu [Source type: FILTERED WITH BAYES]

^ Stock - shares of a publicly-owned company.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.In the absence of a public market for these securities, it is the responsibility of the fund manager to form an estimate of their value when computing the NAV. How much of a fund's assets may be invested in such securities is stated in the fund's prospectus.^ How much is the fund going to make from managing your money?
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Value - may refer to a stock, a mutual fund or a style of investing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Valuing securities in Debt Funds .
  • IDFC Mutual Fund 12 January 2010 0:00 UTC www.idfcmf.com [Source type: FILTERED WITH BAYES]

Average annual return

.US mutual funds use SEC form N-1A to report the average annual compounded rates of return for 1-year, 5-year and 10-year periods as the "average annual total return" for each fund.^ We do not rate mutual funds that are less than a year old.
  • Search and find Indian mutual funds : BSE, NSE, Stock quotes, share market, stock market, stock tips: Rediff Stocks 12 January 2010 0:00 UTC money.rediff.com [Source type: News]
  • Search and find Indian mutual funds : BSE, NSE, Stock quotes, share market, stock market, stock tips: Rediff Stocks 12 January 2010 0:00 UTC money.rediff.com [Source type: News]

^ Average Annual Total Returns * for periods ended December 31, 2009 .
  • Pearl Mutual Funds 12 January 2010 0:00 UTC www.pearlfunds.com [Source type: FILTERED WITH BAYES]

^ Annual audit report of the Mutual Fund Companies.
  • mutual funds 12 January 2010 0:00 UTC www.slideshare.net [Source type: FILTERED WITH BAYES]

The following formula is used:[6]
P(1+T)n = ERV
Where:
P = a hypothetical initial payment of $1,000.
T = average annual total return.
n = number of years.
.ERV = ending redeemable value of a hypothetical $1,000 payment made at the beginning of the 1-, 5-, or 10-year periods at the end of the 1-, 5-, or 10-year periods (or fractional portion).^ Yes, the first year it grows by $700 if it's growing at 7%, versus $1,000 if it's growing at 10%.
  • Personal Fund | Mutual Fund Cost Calculator | Learn More 12 January 2010 0:00 UTC www.personalfund.com [Source type: Original source]

^ For example, if you redeem shares valued at $1,000, and the mutual fund imposes a CDSC of 1%, you would be charged $10 and receive $990.
  • FINRA - Investor Alert - Understanding Mutual Fund Classes 12 January 2010 0:00 UTC www.finra.org [Source type: FILTERED WITH BAYES]

^ After 40 years, your $10,000 will have grown to $149,000 at 7%; but to $452,000 at the full 10%.
  • Personal Fund | Mutual Fund Cost Calculator | Learn More 12 January 2010 0:00 UTC www.personalfund.com [Source type: Original source]

Turnover

.Turnover is a measure of the fund's securities transactions, usually calculated over a year's time, and usually expressed as a percentage of net asset value.^ Valuing securities in Debt Funds .
  • IDFC Mutual Fund 12 January 2010 0:00 UTC www.idfcmf.com [Source type: FILTERED WITH BAYES]

^ Total net assets (year-end) .
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ A measure of the fund's total annual expenses expressed as a percentage of the fund's net assets.
  • FINRA - Investor Alert - Understanding Mutual Fund Classes 12 January 2010 0:00 UTC www.finra.org [Source type: FILTERED WITH BAYES]

.This value is usually calculated as the value of all transactions (buying, selling) divided by 2 divided by the fund's total holdings; i.e., the fund counts one security sold and another one bought as one "turnover". Thus turnover measures the replacement of holdings.^ Valuing securities in Debt Funds .
  • IDFC Mutual Fund 12 January 2010 0:00 UTC www.idfcmf.com [Source type: FILTERED WITH BAYES]

^ Fund holdings are subject to change and are not recommendations to buy or sell any security.
  • Grubb & Ellis AGA Mutual Funds 12 January 2010 0:00 UTC gbemutualfunds.com [Source type: News]

^ Usually a fixed percentage of the total value of your fund.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

.In Canada, under NI 81-106 (required disclosure for investment funds) turnover ratio is calculated based on the lesser of purchases or sales divided by the average size of the portfolio (including cash).^ Legally, funds are required to stop accepting new purchases and sales at 4 p.m.
  • The mutual fund scandal and you - MSN Money 12 January 2010 0:00 UTC moneycentral.msn.com [Source type: News]

^ The five largest diversified U.S. stock fund managers, including Fidelity Investments and Vanguard Group Inc., posted an average 28 percent loss this year through Oct.

^ After the merger of Fortis Investments and ABN AMRO Mutual Funds, the former became one of the leading asset managers in the world, in terms of size as well as investment offering.
  • Fortis Mutual Fund India - Fortis Mutual Funds - Fortis Investment Management (India) Pvt Ltd 12 January 2010 0:00 UTC www.indobase.com [Source type: News]

Expenses and Expense Ratios

.Mutual funds bear expenses similar to other companies.^ A mutual fund account can be similar to a bank account.
  • Mutual Funds 101 12 January 2010 0:00 UTC www.fairmark.com [Source type: General]

^ It does not sell any other mutual fund company's funds.
  • What Are Mutual Funds? 12 January 2010 0:00 UTC www.globefund.com [Source type: News]

^ More on expenses and fees in mutual funds .
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

.The fee structure of a mutual fund can be divided into two or three main components: management fee, non-management expense, and 12b-1/non-12b-1 fees.^ There are two main reasons for mutual fund underperformance: .

^ Table of Contents: mutual fund Main .
  • mutual fund (finance) -- Britannica Online Encyclopedia 12 January 2010 0:00 UTC www.britannica.com [Source type: FILTERED WITH BAYES]

^ This section provides an overview of mutual fund fees and expenses.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

.All expenses are expressed as a percentage of the average daily net assets of the fund.^ Average daily net assets .
  • Hussman Funds - Mutual Fund Brokerage Commissions and Trading Costs 12 January 2010 0:00 UTC www.hussmanfunds.com [Source type: FILTERED WITH BAYES]

^ Expense ratio The percentage of total assets used to pay for fund expenses.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ A fund’s expense ratio is its annual ongoing expenses expressed as a percentage of fund assets.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

Management fees

.The management fee for the fund is usually synonymous with the contractual investment advisory fee charged for the management of a fund's investments.^ The fund has an adviser who charges a fee for managing the portfolio.

^ These funds usually also charge a 12b-1 fee.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Management fee -- Charge for running the fund.

.However, as many fund companies include administrative fees in the advisory fee component, when attempting to compare the total management expenses of different funds, it is helpful to define management fee as equal to the contractual advisory fee plus the contractual administrator fee.^ Management fee Fee levied for management of the fund and/or shareholder administration services.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Mutual fund managers at top fund companies are different than many individual fund investors.
  • Mutual Fund Industry | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: News]

^ I watch the funds expenses--administration and sales fees or fees known as 12B fees.

.This "levels the playing field" when comparing management fee components across multiple funds.^ Management fee -- Charge for running the fund.

^ Funds are also subject to management fees and expenses.
  • Investing in Mutual Funds: Charles Schwab: Mutual Funds 12 January 2010 0:00 UTC www.schwab.com [Source type: FILTERED WITH BAYES]

^ Now the average Asian fund sells for a price-earnings multiple of 13, compared to a figure of 10 for European funds, according to Morningstar.
  • Registered Rep Investing - Mutual Funds 12 January 2010 0:00 UTC registeredrep.com [Source type: News]

.Contractual advisory fees may be structured as "flat-rate" fees, i.e., a single fee charged to the fund, regardless of the asset size of the fund.^ Management fee -- Charge for running the fund.

^ Fund Size - Look at the total size of the funds' assets.

^ Pearl Management Company , the Funds Manager, has contractually agreed to reimburse each Pearl Fund for all ordinary operating expenses (including all management and administrative fees) exceeding 1.20% of a Fund's average net assets.
  • Pearl Mutual Funds 12 January 2010 0:00 UTC www.pearlfunds.com [Source type: FILTERED WITH BAYES]

.However, many funds have contractual fees which include breakpoints so that as the value of a fund's assets increases, the advisory fee paid decreases.^ Changes in yield do not reflect a corresponding increase or decrease in the funds net asset value.

^ While late trading and market timing are two of the many ways mutual fund investors can suffer when the fund directors do not perform their duties and allow the advisors to take advantage of the mutual funds, the most common abuse is excessive advisory fees.
  • Mutual Fund Attorneys - RPWB, LLC 12 January 2010 0:00 UTC www.rpwb.com [Source type: Academic]

^ Pearl Management Company , the Funds Manager, has contractually agreed to reimburse each Pearl Fund for all ordinary operating expenses (including all management and administrative fees) exceeding 1.20% of a Fund's average net assets.
  • Pearl Mutual Funds 12 January 2010 0:00 UTC www.pearlfunds.com [Source type: FILTERED WITH BAYES]

.Another way in which the advisory fees remain competitive is by structuring the fee so that it is based on the value of all of the assets of a group or a complex of funds rather than those of a single fund.^ Many of the redemptions have come from institutions, such as insurance companies, which have taken their assets in kind, or in the form of securities rather than cash.
  • The mutual fund scandal and you - MSN Money 12 January 2010 0:00 UTC moneycentral.msn.com [Source type: News]

^ The investment return and principal value of a mutual fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

^ While late trading and market timing are two of the many ways mutual fund investors can suffer when the fund directors do not perform their duties and allow the advisors to take advantage of the mutual funds, the most common abuse is excessive advisory fees.
  • Mutual Fund Attorneys - RPWB, LLC 12 January 2010 0:00 UTC www.rpwb.com [Source type: Academic]

Non-management expenses

.Apart from the management fee, there are certain non-management expenses which most funds must pay.^ More on expenses and fees in mutual funds .
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

^ Management fee -- Charge for running the fund.

^ There is a fee associated with this professional management.

.Some of the more significant (in terms of amount) non-management expenses are: transfer agent expenses (this is usually the person you get on the other end of the phone line when you want to purchase/sell shares of a fund), custodian expense (the fund's assets are kept in custody by a bank which charges a custody fee), legal/audit expense, fund accounting expense, registration expense (the SEC charges a registration fee when funds file registration statements with it), board of directors/trustees expense (the members of the board who oversee the fund are usually paid a fee for their time spent at meetings), and printing and postage expense (incurred when printing and delivering shareholder reports).^ You can even have that income reinvested in more fund shares.
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ Significance of Fund Portfolio Liquidity more .
  • Indian Mutual Funds - Business Exchange 12 January 2010 0:00 UTC bx.businessweek.com [Source type: FILTERED WITH BAYES]

^ Dividend Reinvestment Fee - Fee charged when an investor uses dividends paid by a mutual fund to purchase additional shares of the mutual fund.

12b-1/Non-12b-1 service fees

.In the United States, 12b-1 service fees/shareholder servicing fees are contractual fees which a fund may charge to cover the marketing expenses of the fund.^ These funds usually also charge a 12b-1 fee.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Management fee Fee levied for management of the fund and/or shareholder administration services.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Fee deducted from the earning of your mutual fund to cover a fund's sales and marketing expenses.

.Non-12b-1 service fees are marketing/shareholder servicing fees which do not fall under SEC rule 12b-1. While funds do not have to charge the full contractual 12b-1 fee, they often do.^ These funds usually also charge a 12b-1 fee.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Management fee Fee levied for management of the fund and/or shareholder administration services.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

^ Management fee -- Charge for running the fund.

.When investing in a front-end load or no-load fund, the 12b-1 fees for the fund are usually .250% (or 25 basis points).^ Front-end load = 0 percent and CDSL > 2 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end-load shares also often have a 12b-1 fee of about 0.25 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ I buy only NO-LOAD funds.

.The 12b-1 fees for back-end and level-load share classes are usually between 50 and 75 basis points but may be as much as 100 basis points.^ Back-end-load shares, which are primarily Class B shares, typically do not have a front-end load.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end-load shares also often have a 12b-1 fee of about 0.25 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Another fee that acts like a back-end load is the redemption fee.

.While funds are often marketed as "no-load" funds, this does not mean they do not charge a distribution expense through a different mechanism.^ I buy only NO-LOAD funds.

^ A fund that is no-load has no sales charge.
  • Mutual Funds 12 January 2010 0:00 UTC www.markrosa.com [Source type: FILTERED WITH BAYES]

^ No-load funds don't charge for buying or selling fund shares.
  • Mutual Funds 12 January 2010 0:00 UTC www.buzzle.com [Source type: FILTERED WITH BAYES]

.It is expected that a fund listed on an online brokerage site will be paying for the "shelf-space" in a different manner even if not directly through a 12b-1 fee.^ You can save money, though, by going directly to the mutual fund sponsor; otherwise, another financial company will charge you a load fee for your investment in the mutual fund.
  • Eliminate Debt & How to Determine if Mutual Funds Should Be a Part of Your Savings Strategy 12 January 2010 0:00 UTC www.eliminatedebt.org [Source type: General]

^ Hedge fund manager Joel Greenblatt and online brokerage pioneer Blake Darcy recently opened an online managed account service for retail investors.
  • Registered Rep Investing - Mutual Funds 12 January 2010 0:00 UTC registeredrep.com [Source type: News]
  • Mutual Funds - Registered Rep. - Articles on topics affecting mutual funds 12 January 2010 0:00 UTC registeredrep.com [Source type: News]

^ Now, investors can purchase no-load funds through employer-sponsored retirement plans, mutual fund supermarkets, discount brokerage firms, and bank trust departments as well as directly from mutual fund sponsors.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

Investor fees and expenses

.Fees and expenses borne by the investor vary based on the arrangement made with the investor's broker.^ Each of the participating investors is charged a percentage fee based on what they invest so that the professional fund manager can receive payment for his work as well as the costs that are associated with researching the various investment vehicles.

^ In pursuing the selection for the best mutual fund, some mutual fund investors tend to focus exclusively on fees and expense ratios.
  • Best No Load Mutual Funds: Mutual Fund Fees Mutual Fund Expenses 12 January 2010 0:00 UTC www.alphaprofit.com [Source type: FILTERED WITH BAYES]

^ If you are a wealthy stock investor, then you have it made because you get preferential treatment from the brokers.

.Sales loads (or contingent deferred sales loads (CDSL)) are included in the fund's total expense ratio (TER) because they pass through the statement of operations for the fund.^ A fund that is no-load has no sales charge.
  • Mutual Funds 12 January 2010 0:00 UTC www.markrosa.com [Source type: FILTERED WITH BAYES]

^ Transaction costs are not incorporated in a fund's "total expense ratio."
  • Personal Fund | Mutual Fund Cost Calculator | Learn More 12 January 2010 0:00 UTC www.personalfund.com [Source type: Original source]

^ If the total passes the fund's annual expenses, you get the rest.
  • Mutual Fund Definition | Mutual Fund Glossary 12 January 2010 0:00 UTC www.fool.com [Source type: News]

.Additionally, funds may charge early redemption fees to discourage investors from swapping money into and out of the fund quickly, which may force the fund to make bad trades to obtain the necessary liquidity.^ If the investments of a mutual fund make money, then the investors also make money.
  • Eliminate Debt & How to Determine if Mutual Funds Should Be a Part of Your Savings Strategy 12 January 2010 0:00 UTC www.eliminatedebt.org [Source type: General]

^ Mutual funds can also make money for investors when the fund sells investments at a profit.
  • Investment Management and Mutual Fund Investing 12 January 2010 0:00 UTC www.swimllc.com [Source type: FILTERED WITH BAYES]

^ The mutual fund company makes its money through the management fees charged to unitholders.
  • What Are Mutual Funds? 12 January 2010 0:00 UTC www.globefund.com [Source type: News]

.For example, Fidelity Diversified International Fund (FDIVX) charges a 10 percent fee on money removed from the fund in less than 30 days.^ A feature on high fund fees from Money .

^ Management fee -- Charge for running the fund.

^ Not all funds charge fees.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

Brokerage commissions

.An additional expense which does not pass through the statement of operations and cannot be controlled by the investor is brokerage commissions.^ The expense ratio pays for the fund’s recurring operating costs (such as salaries, research costs, technology, and service, to name a few), but it does not cover trading and other costs.
  • Mutual funds may be a bad way to invest 12 January 2010 0:00 UTC www.christianpf.com [Source type: General]

^ Additionally, we *know* this cannot be true, mathematically, as the average of all managers’ performance *must be* equal to the market return before accounting for fees (and not simply management fees, 12-b-1’s, etc — but also transaction fees that are passed along to investors).

^ To find these and other expenses, you must look in the fund’s Statement of Additional Information (SAI).
  • Mutual funds may be a bad way to invest 12 January 2010 0:00 UTC www.christianpf.com [Source type: General]

.Brokerage commissions are incorporated into the price of the fund and are reported usually 6 months after the fund's annual report in the statement of additional information.^ Funds also provide semi-annual and annual reports.
  • Investment Management and Mutual Fund Investing 12 January 2010 0:00 UTC www.swimllc.com [Source type: FILTERED WITH BAYES]

^ Tribune reporter Keeping quiet works when operating elite hedge funds, but it's usually not a great strategy when running a retailer.
  • Mutual Funds : Mutual Funds News and Photos - chicagotribune.com 12 January 2010 0:00 UTC www.chicagotribune.com [Source type: News]

^ A statement of additional information about the fund must be available to shareholders upon request.
  • CBOE - Mutual Funds 12 January 2010 0:00 UTC www.cboe.com [Source type: FILTERED WITH BAYES]

.Brokerage commissions are directly related to portfolio turnover (portfolio turnover refers to the number of times the fund's assets are bought and sold over the course of a year).^ Allocation - refers to the breakdown of assets in a portfolio, i.e.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ There are brokerage commissions, of course.
  • Personal Fund | Mutual Fund Cost Calculator | Learn More 12 January 2010 0:00 UTC www.personalfund.com [Source type: Original source]

^ ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.Usually, higher rate of portfolio turnover returns in higher brokerage commissions.^ They take away the risk of investing in single stocks and are a great way to have a diversified portfolio and still make average rates of returns from 12-18%.

^ Since these companies have large amounts of money to invest, they usually have personal contacts at many brokerage firms and often trade commission-free.

^ During the past year, the Fund paid 0.30% of net assets in commissions, with a turnover rate of 68%, and an average price impact of 0.69%.
  • Hussman Funds - Mutual Fund Brokerage Commissions and Trading Costs 12 January 2010 0:00 UTC www.hussmanfunds.com [Source type: FILTERED WITH BAYES]

.The advisors of mutual fund companies are required to achieve "best execution" through brokerage arrangements so that the commissions charged to the fund will not be excessive.^ Load funds charge sales commissions.
  • What Are Mutual Funds? 12 January 2010 0:00 UTC www.globefund.com [Source type: News]

^ The mutual fund company makes its money through the management fees charged to unitholders.
  • What Are Mutual Funds? 12 January 2010 0:00 UTC www.globefund.com [Source type: News]

^ Read information on best mutual funds in India, mutual fund companies India, investment mutual funds.
  • Mutual Funds 12 January 2010 0:00 UTC www.buzzle.com [Source type: FILTERED WITH BAYES]

Types of mutual funds

Open-end fund

.The term mutual fund is the common name for what is classified as an open-end investment company by the SEC. Being open-ended means that, at the end of every day, the fund issues new shares to investors and buys back shares from investors wishing to leave the fund.^ Where can I buy mutual funds from?

^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ Includes open-end mutual funds which accept investments directly from individuals.
  • Alternative Energy Mutual Funds | AltEnergyStocks.com Clean Tech, CleanTech News Discussion | Alt Energy Stocks 12 January 2010 0:00 UTC www.altenergystocks.com [Source type: News]

.Mutual funds must be structured as corporations or trusts, such as business trusts, and any corporation or trust will be classified by the SEC as an investment company if it issues securities and primarily invests in non-government securities.^ Types of Mutual Funds Mutual funds can be classified by their investment objectives and the types of securities they hold.

^ Evergreen Mutual Funds is one such company.

^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

.An investment company will be classified by the SEC as an open-end investment company if they do not issue undivided interests in specified securities (the defining characteristic of unit investment trusts or UITs) and if they issue redeemable securities.^ Unit Investment Trust : A mutual fund alternative is the unit investment trust (UIT).
  • Finance: Investing Guide » Mutual Funds 12 January 2010 0:00 UTC maagblog.ysu.edu [Source type: FILTERED WITH BAYES]

^ The shares purchased may be in open- or closed-end investment companies.
  • Finance: Investing Guide » Mutual Funds 12 January 2010 0:00 UTC maagblog.ysu.edu [Source type: FILTERED WITH BAYES]

^ Shares in open-end investment companies are sold directly to the investor by the issuing company.
  • Finance: Investing Guide » Mutual Funds 12 January 2010 0:00 UTC maagblog.ysu.edu [Source type: FILTERED WITH BAYES]

.Registered investment companies that are not UITs or open-end investment companies are closed-end funds.^ Closed End funds .
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ Management Companies - There are two types: open-end and closed-end.

^ Open-end versus closed-end funds.

.Neither UITs nor closed-end funds are mutual funds (as that term is used in the US).^ Closed End funds .
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ Open-end versus closed-end funds.

^ The typical mutual fund is an open-end fund.
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

Exchange-traded funds

.A relatively recent innovation, the exchange-traded fund or ETF, is often structured as an open-end investment company.^ Consider index funds or exchange-traded funds.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Another alternative is Exchange-Trade Fund (ETF).
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ Open-end versus closed-end funds.

.ETFs combine characteristics of both mutual funds and closed-end funds.^ Closed End funds .
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ With the advent of ETFs and closed end funds, the choices are much larger.
  • Mutual funds may be a bad way to invest 12 January 2010 0:00 UTC www.christianpf.com [Source type: General]

^ Open-end versus closed-end funds.

.ETFs are traded throughout the day on a stock exchange, just like closed-end funds, but at prices generally approximating the ETF's net asset value.^ ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ This means that fund's closing price-per-share for the day is $30.
  • Mutual Funds 12 January 2010 0:00 UTC www.markrosa.com [Source type: FILTERED WITH BAYES]

^ Closed End funds .
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

.Most ETFs are index funds and track stock market indexes.^ When the market declines, so will the index fund.

^ Index Funds The intent of an index fund is basically to track the performance of the stock market.

^ ETF is a security that tracks an index, a commodity or a basket of assets like an index fund, but trades like a stock on an exchange, thus experiencing price changes throughout the day as it is bought and sold.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.Shares are issued or redeemed by institutional investors in large blocks (typically of 50,000).^ AM PDT. Institutional investors are 90%+ of the market, and like most groups of people in a common endeavor, they have severe issues with groupthink.
  • Mutual Fund Madness | Mother Jones 12 January 2010 0:00 UTC motherjones.com [Source type: General]

^ The investment return and principal value of a mutual fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

^ When redeeming shares, the money investors receive depends on how well the portfolio has performed since the shares were purchased.

.Most investors purchase and sell shares through brokers in market transactions.^ AM PDT. Institutional investors are 90%+ of the market, and like most groups of people in a common endeavor, they have severe issues with groupthink.
  • Mutual Fund Madness | Mother Jones 12 January 2010 0:00 UTC motherjones.com [Source type: General]

^ Note that the reason many index funds were more expensive was because they were A, B, and C share classes, which are sold through brokers and investment advisors.
  • 18 Low Cost S and P 500 Index Mutual Funds | Personal Investment Management and Financial Planning Blog Directory 12 January 2010 0:00 UTC www.theskilledinvestor.com [Source type: FILTERED WITH BAYES]

^ With ETFs, investors don’t realize gains until they sell their shares.

.Because the institutional investors normally purchase and redeem in in kind transactions, ETFs are more efficient than traditional mutual funds (which are continuously issuing and redeeming securities and, to effect such transactions, continually buying and selling securities and maintaining liquidity positions) and therefore tend to have lower expenses.^ Where can I buy mutual funds from?

^ Is there an advantage to investing in more than one Mutual Fund?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ Mutual Fund - a basket of securities purchased by a fund manager according to an objective for the fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Exchange-traded funds are also valuable for foreign investors who are often able to buy and sell securities traded on a stock market, but who, for regulatory reasons, are limited in their ability to participate in traditional U.S. mutual funds.^ Where can I buy mutual funds from?

^ A foreign mutual fund is a mutual fund that invests in non-US stocks.
  • Mutual Funds Types (Money & Careers: Stock Markets) 12 January 2010 0:00 UTC www.videojug.com [Source type: FILTERED WITH BAYES]

^ Stocks and bonds fluctuate in value and therefore so do mutual funds.
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

Equity funds

.Equity funds, which consist mainly of stock investments, are the most common type of mutual fund.^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ Can mutual fund managers pick stocks?
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

^ Equity income funds -- Mutual funds that favor investments in stocks that generate income over growth.

.Equity funds hold 50 percent of all amounts invested in mutual funds in the United States.^ Mutual Funds: Is it the right time to invest?
  • Mutual Funds 12 January 2010 0:00 UTC www.buzzle.com [Source type: FILTERED WITH BAYES]

^ A global fund can invest overseas as well as in the United States.
  • Mutual Funds 12 January 2010 0:00 UTC www.millerwade.com [Source type: FILTERED WITH BAYES]

^ Usually, between 75 to 80 percent of the fund is invested in U.S. equities.
  • Mutual Funds That Bank on ETFs - Fund Observer (usnews.com) 12 January 2010 0:00 UTC www.usnews.com [Source type: News]

.[7] Often equity funds focus investments on particular strategies and certain types of issuers.^ What type of investments are in the mutual funds?
  • PNB - Mutual Funds: Questions & Answers 12 January 2010 0:00 UTC www.pnb.com [Source type: General]

^ The Focus Fund Family is an investment in quality.

^ Types of Mutual Funds Mutual funds can be classified by their investment objectives and the types of securities they hold.

Capitalization

.Fund managers and other investment professionals have varying definitions of mid-cap, and large-cap ranges.^ 'Fund') (GHI), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily .
  • Mutual Funds News - Congoo 12 January 2010 0:00 UTC www.congoo.com [Source type: News]

^ A mutual fund allows people with common financial goals to pool their resources together in one professionally managed investment that holds many different securities.
  • Mutual Funds 12 January 2010 0:00 UTC www.millerwade.com [Source type: FILTERED WITH BAYES]

^ According to our measures of skill, certain funds perform persistently better than others, and the best performers tend to have a growth objective, large size, high turnover, and use incentive fees to motivate managers.
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

The following ranges are used by Russell Indexes: [8]
  • Russell Microcap Index – micro-cap ($54.8 – 539.5 million)
  • Russell 2000 Index – small-cap ($182.6 million – 1.8 billion)
  • Russell Midcap Index – mid-cap ($1.8 – 13.7 billion)
  • Russell 1000 Index – large-cap ($1.8 – 386.9 billion)

Growth vs. value

.Another distinction is made between growth funds, which invest in stocks of companies that have the potential for large capital gains, and value funds, which concentrate on stocks that are undervalued.^ A growth fund typically invests in stocks of companies with the greatest potential for long-term growth.
  • Mutual Funds 12 January 2010 0:00 UTC www.millerwade.com [Source type: FILTERED WITH BAYES]

^ Value - may refer to a stock, a mutual fund or a style of investing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Blend - refers to a fund that includes both growth stocks and value stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Value stocks have historically produced higher returns; however, financial theory states this is compensation for their greater risk.^ However, it is important to remember that due to the nature of the companies being invested in, this asset class has an inherently higher level of risk associated with it.
  • TD Waterhouse - Products & Services - Investing - Mutual Funds 12 January 2010 0:00 UTC www.tdwaterhouse.ca [Source type: News]

^ However, if you want to maximize the amount of money that you are investing (which in turn leads to higher returns), then a no-load mutual fund is for you.
  • Picking a No-Load Mutual Fund | Personal Finance Corner 12 January 2010 0:00 UTC www.allbusiness.com [Source type: News]

^ Rule of Thumb : An aggressive strategy of buying stocks after their prices have already substantially moved up increases risk of losing value.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Growth funds tend not to pay regular dividends.^ Some people prefer to wait until after this date to purchase funds, because they do not want to pay taxes on these capital gains and dividends.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ The Securities and Exchange Commission requires funds to publish after-tax returns, which assume investors pay the highest applicable tax rate on dividend and capital gains.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Companies accomplish this by reinvesting their profits into the company, instead of paying them out to investors as dividends; funds accomplish this by investing in growth stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Income funds tend to be more conservative investments, with a focus on stocks that pay dividends.^ Objective: The Fund's primary investment goal is to provide a level of current income which exceeds the average yield on U.S. stocks generally, and which will generally grow, subject to periodic fluctuations, over the years on a per share basis.

^ Mutual funds and unit trusts are open ended investment vehicles designed with the stated set of objectives such us capital growth or income return from capital .
  • Best Mutual Funds & Unit Trusts. Offshore Investment Portfolios - KMI Consultants 12 January 2010 0:00 UTC www.kmicentral.com [Source type: FILTERED WITH BAYES]

^ 'Fund') (GHI), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily .
  • Mutual Funds News - Congoo 12 January 2010 0:00 UTC www.congoo.com [Source type: News]

.A balanced fund may use a combination of strategies, typically including some level of investment in bonds, to stay more conservative when it comes to risk, yet aim for some growth.^ I have some very conservative investments, mostly mutual funds.

^ Investments in the Funds carry risks, including possible loss of principal.

^ A mutual fund may be a bond fund, in which case the securities in it are bonds; or it may be a combination of bonds and stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

[citation needed]

Index funds versus active management

.An index fund maintains investments in companies that are part of major stock (or bond) indexes, such as the S&P 500, while an actively managed fund attempts to outperform a relevant index through superior stock-picking techniques.^ Actively managed funds have to maintain sizable cash positions.
  • Mutual Fund Madness | Mother Jones 12 January 2010 0:00 UTC motherjones.com [Source type: General]

^ In the case of passively managed index funds, the investments are managed to mirror the holdings of an underlying investment index such as the S&P 500, or the stock market as a whole.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ (The exception to this is the Vanguard 500 Index fund, which is an S&P 500 index fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.The assets of an index fund are managed to closely approximate the performance of a particular published index.^ Index performance is not indicative of fund performance.
  • Grubb & Ellis AGA Mutual Funds 12 January 2010 0:00 UTC gbemutualfunds.com [Source type: News]

^ Fund managers rarely beat an index.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ What has been the performance of the fund under this manager?
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Since the composition of an index changes infrequently, an index fund manager makes fewer trades, on average, than does an active fund manager.^ Also the tax efficiency of index funds is far better than for active managers.

^ Consider index funds or exchange-traded funds.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Mutual funds can be actively or passively managed.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

.For this reason, index funds generally have lower trading expenses than actively managed funds, and typically incur fewer short-term capital gains which must be passed on to shareholders.^ Consider index funds or exchange-traded funds.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Capital gain distributions include long-term and short-term capital gains.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ This was true for both actively managed funds and index mutual funds.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

.Additionally, index funds do not incur expenses to pay for selection of individual stocks (proprietary selection techniques, research, etc.^ While ETFs match a basket of stocks like an index fund, because of their traded nature they can be at a premium or discount to the actual values of the stocks.
  • » Index Mutual Funds vs. Exchange Traded Funds (ETFs) @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ You can also find this same research article using this link: “ S&P 500 Index Mutual Funds: Diverse expenses and performance characteristics .” .
  • 18 Low Cost S and P 500 Index Mutual Funds | Personal Investment Management and Financial Planning Blog Directory 12 January 2010 0:00 UTC www.theskilledinvestor.com [Source type: FILTERED WITH BAYES]

^ Indexes are safe but seldome offer the potential returns of a properly selected fund.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

) and deciding when to buy, hold or sell individual holdings. .Instead, a fairly simple computer model can identify whatever changes are needed to bring the fund back into agreement with its target index.^ They got included in the S&P 500 and the index funds needed to buy their shares in order to maintain their proper holdings.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ Fund managers can also make certain investment decisions and change up the holdings of a fund if there is trouble brewing, something index funds can't as easily do.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ As a simple hypothetical, assume an additional $900,000 of cash flows into Fund X's $90 million portfolio.
  • CBOE - Mutual Funds 12 January 2010 0:00 UTC www.cboe.com [Source type: FILTERED WITH BAYES]

.Certain empirical evidence seems to illustrate that mutual funds do not beat the market and actively managed mutual funds under-perform other broad-based portfolios with similar characteristics.^ Yet 50% of managed $ beat the market, while the other 50% underperformed.
  • Mutual Fund Madness | Mother Jones 12 January 2010 0:00 UTC motherjones.com [Source type: General]

^ Can mutual fund managers pick stocks?
  • Mutual Funds: Investing In Stocks Or Bonds For Retirement Planning, Asset Growth, and Wealth Preservation 12 January 2010 0:00 UTC bluecollardollar.com [Source type: General]

^ Mutual funds can be actively or passively managed.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

.One study found that nearly 1,500 U.S. mutual funds under-performed the market in approximately half of the years between 1962 and 1992.[9] Moreover, funds that performed well in the past are not able to beat the market again in the future (shown by Jensen, 1968; Grinblatt and Sheridan Titman, 1989).^ What is the difference between Mutual Funds and ULIP ?

^ This one act can change your mutual funds investing future.
  • Market Timing individual Rydex Sector Funds, Market Timing Rydex Index Funds. Timing system 12 January 2010 0:00 UTC www.tradingmutualfunds.com [Source type: FILTERED WITH BAYES]

^ Performance is not shown for funds that have an inception date of less than one year.

[10]

Bond funds

.Bond funds account for 18% of mutual fund assets.^ Taxable bond funds -- Bond mutual fund in which interest income is taxed by Uncle Sam.

^ These accounts aggregate all the orders and assets of their customers, rather than using the subaccounting features that may be available via the mutual fund's transfer agent [ Sub ] .
  • Mutual Funds and Financial Flaws 12 January 2010 0:00 UTC iang.org [Source type: FILTERED WITH BAYES]

^ Bond funds (16 percent) and hybrid funds (5 percent) held the remainder of total U.S. mutual fund assets.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

.[11] Types of bond funds include term funds, which have a fixed set of time (short-, medium-, or long-term) before they mature.^ Capital gain distributions include long-term and short-term capital gains.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ All long-term funds .
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Is it a short term bond future or a long term bond fund?
  • Mutual Funds Types (Money & Careers: Stock Markets) 12 January 2010 0:00 UTC www.videojug.com [Source type: FILTERED WITH BAYES]

.Municipal bond funds generally have lower returns, but have tax advantages and lower risk.^ Putnam municipal bond funds (several) .
  • FundAlarm - Mutual Fund Manager Changes (Updated 1st of Each Month) 12 January 2010 0:00 UTC www.fundalarm.com [Source type: General]

^ Since the launch of our first fixed-income fund over two decades ago, we have been conducting fundamental, bottom-up research in an effort to identify bonds which we believe provide the best return for a given level of risk.

^ Taxable bond funds -- Bond mutual fund in which interest income is taxed by Uncle Sam.

.High-yield bond funds invest in corporate bonds, including high-yield or junk bonds.^ The data exclude flows to high-yield bond funds.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Corporate Bond Funds Corporate bond funds invest in debt securities issued by corporations.
  • mutual funds 12 January 2010 0:00 UTC www.slideshare.net [Source type: FILTERED WITH BAYES]

^ Also known as junk bond funds.

.With the potential for high yield, these bonds also come with greater risk.^ Also know as high-yield bond funds.

^ High-yield bond funds -- Risky bond mutual funds that invest in high-yield bonds of companies with poor credit ratings.

^ ING High Yield Bond [Archive page, under 4/07] .
  • FundAlarm - Mutual Fund Manager Changes (Updated 1st of Each Month) 12 January 2010 0:00 UTC www.fundalarm.com [Source type: General]

Money market funds

.Money market funds hold 26% of mutual fund assets in the United States.^ Doesn't include money market assets.
  • American Funds Mutual Funds - Fund Family Snapshot 12 January 2010 0:00 UTC quicktake.morningstar.com [Source type: FILTERED WITH BAYES]

^ Money market funds .
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

^ Also known as money market funds or money funds.

.[12] Money market funds entail the least risk, as well as lower rates of return.^ Money market funds .
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

^ Also known as money market funds or money funds.

^ Investments in lower rated and unrated bonds may be more sensitive to default, downgrades, and market volatility; these investments may also be less liquid than higher rated bonds.

.Unlike certificates of deposit (CDs), money market shares are liquid and redeemable at any time.^ Shareholders may redeem or exchange their shares, as circumstances require, at any time.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

^ Certificates of Deposit (CDs) -- Debt instruments issued by banks and thrifts.

^ When redeeming shares, the money investors receive depends on how well the portfolio has performed since the shares were purchased.

Funds of funds

.Funds of funds (FoF) are mutual funds which invest in other underlying mutual funds (i.e., they are funds composed of other funds).^ Funds of funds are mutual funds that primarily hold and invest in shares of other mutual funds.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

^ Another variation of window dressing is investing in stocks that don't meet the style of the mutual fund.
  • The Kirk Report : Mutual Funds Archives 12 January 2010 0:00 UTC www.thekirkreport.com [Source type: General]

.The funds at the underlying level are typically funds which an investor can invest in individually.^ Investors should carefully consider the Fund's investment objectives, risks, charges, and expenses before investing.
  • Managers Investment Group: Mutual Funds Overview 12 January 2010 0:00 UTC www.managersinvest.com [Source type: Academic]

^ As a mutual fund investor, you buy shares (also known as units) of the fund, based on the amount of money you are investing.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ When you invest in a mutual fund, your money is pooled with other investors.
  • Mutual funds as part of your investment strategy – Northwestern Mutual 12 January 2010 0:00 UTC www.northwesternmutual.com [Source type: News]

.A fund of funds will typically charge a management fee which is smaller than that of a normal fund because it is considered a fee charged for asset allocation services.^ The fund has an adviser who charges a fee for managing the portfolio.

^ A load is basically a sales fee charged by mutual fund managers.
  • Picking a No-Load Mutual Fund | Personal Finance Corner 12 January 2010 0:00 UTC www.allbusiness.com [Source type: News]

^ Management fee -- Charge for running the fund.

.The fees charged at the underlying fund level do not pass through the statement of operations, but are usually disclosed in the fund's annual report, prospectus, or statement of additional information.^ Request the prospectus, the Statement of Additional Information and the latest shareholder report from each fund you are considering.

^ Management fee -- Charge for running the fund.

^ Not all funds charge fees.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.The fund should be evaluated on the combination of the fund-level expenses and underlying fund expenses, as these both reduce the return to the investor.^ Each of these funds has expense, risk, and return characteristics.
  • mutual funds 12 January 2010 0:00 UTC www.slideshare.net [Source type: FILTERED WITH BAYES]

^ Investors should carefully consider the Fund's investment objectives, risks, charges, and expenses before investing.
  • Managers Investment Group: Mutual Funds Overview 12 January 2010 0:00 UTC www.managersinvest.com [Source type: Academic]

^ The firm founded by famed distressed-securities investor Marty Whitman just launched a fund that should pay juicy...
  • Mutual Funds Investing - Business Exchange 12 January 2010 0:00 UTC bx.businessweek.com [Source type: FILTERED WITH BAYES]

.Most FoFs invest in affiliated funds (i.e., mutual funds managed by the same advisor), although some invest in funds managed by other (unaffiliated) advisors.^ Mutual funds can be actively or passively managed.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ Mutual funds can make investing easier.
  • Mutual Funds from MetLife 12 January 2010 0:00 UTC www.metlife.com [Source type: General]

^ Most Read Mutual funds Articles .
  • Mutual Funds News - Congoo 12 January 2010 0:00 UTC www.congoo.com [Source type: News]

.The cost associated with investing in an unaffiliated underlying fund is most often higher than investing in an affiliated underlying because of the investment management research involved in investing in fund advised by a different advisor.^ Professional management : Fund managers do the research and invest on your behalf.
  • Mutual Funds from MetLife 12 January 2010 0:00 UTC www.metlife.com [Source type: General]

^ How much, how often, and at what cost to the fund?
  • Mutual Funds and Financial Flaws 12 January 2010 0:00 UTC iang.org [Source type: FILTERED WITH BAYES]

^ Mutual fund investing involves risk.
  • Grubb & Ellis AGA Mutual Funds 12 January 2010 0:00 UTC gbemutualfunds.com [Source type: News]

.Recently, FoFs have been classified into those that are actively managed (in which the investment advisor reallocates frequently among the underlying funds in order to adjust to changing market conditions) and those that are passively managed (the investment advisor allocates assets on the basis of on an allocation model which is rebalanced on a regular basis).^ Mutual funds can be actively or passively managed.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ This is especially true when you buy into an actively managed fund.
  • » What is a Mutual Fund? @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ Yet, we have trillions in assets in actively managed funds.

.The design of FoFs is structured in such a way as to provide a ready mix of mutual funds for investors who are unable to or unwilling to determine their own asset allocation model.^ Mutual fund data provided by Lipper .

^ Mixed-Asset Target 2025 Funds .

^ Mixed-Asset Target 2050+ Funds .

.Fund companies such as TIAA-CREF, American Century Investments, Vanguard, and Fidelity have also entered this market to provide investors with these options and take the "guess work" out of selecting funds.^ Guess where the fund eventually takes the money from?
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ If it has been opened with a mutual fund company, then mutual funds are the only investment options.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ I expect these funds to outperform the market.
  • Mutual Fund Portal India 12 January 2010 0:00 UTC fund.blogono.com [Source type: News]

.The allocation mixes usually vary by the time the investor would like to retire: 2020, 2030, 2050, etc.^ No Comments recently opted for voluntary retirement and would like to park some retirement proceeds in mutual funds as the dividend income is tax free.
  • Mutual Fund Portal India 12 January 2010 0:00 UTC fund.blogono.com [Source type: News]

^ Meanwhile, you would sell-short another – in this case a major integrated oil firm like say, Exxon Mobil ( XOM ) – at the same time.

.The more distant the target retirement date, the more aggressive the asset mix.^ Mixed-Asset Target 2010 .

^ Mixed-Asset Target 2020 .

^ Mixed-Asset Target 2035 .

Hedge funds

.Hedge funds in the United States are pooled investment funds with loose SEC regulation, unlike mutual funds.^ Mutual Funds percent power price rate regulations risk securities shares stock swap time trading trust trust deed trustee trusts unit unitholders units unit trust value Copyright © 2009 Funds Investing .
  • Mutual Funds and Financial Advice 12 January 2010 0:00 UTC funds.blogtells.com [Source type: General]

^ A. Disclosure Requirements Mutual funds and the securities they issue are required to be registered with the Securities and Exchange Commission ("SEC") pursuant to both the 1933 Act and the 1940 Act.
  • CBOE - Mutual Funds 12 January 2010 0:00 UTC www.cboe.com [Source type: FILTERED WITH BAYES]

^ With the many different investment styles and objectives, there’s bound to be a number of mutual funds that are suited to your investing profile.
  • mutual funds 12 January 2010 0:00 UTC www.slideshare.net [Source type: FILTERED WITH BAYES]

.Some hedge fund managers are required to register with SEC as investment advisers under the Investment Advisers Act.^ Some index funds require a minimum initial investment.
  • » Index Mutual Funds vs. Exchange Traded Funds (ETFs) @ fivecentnickel.com 12 January 2010 0:00 UTC www.fivecentnickel.com [Source type: General]

^ What has been the performance of the fund under this manager?
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ 'Fund') (GHI), a non-diversified, closed-end management investment company seeking high current income and secondarily, capital appreciation through investments primarily .
  • Mutual Funds News - Congoo 12 January 2010 0:00 UTC www.congoo.com [Source type: News]

.[13] The Act does not require an adviser to follow or avoid any particular investment strategies, nor does it require or prohibit specific investments.^ In addition to paying the fine, Putnam’s former CEO has also agreed to cease and desist when it comes to certain violations of the 1940 Investment Advisers Act.

^ Value averaging investing -- Investment strategy in which you always make sure that the value of your fund increases by a specific amount over a specific time period.

^ The Investment Advisers Act regulates the business practices of mutual fund investment advisers, as well as other categories of investment advisers.
  • CBOE - Mutual Funds 12 January 2010 0:00 UTC www.cboe.com [Source type: FILTERED WITH BAYES]

.Hedge funds typically charge a management fee of 1% or more, plus a “performance fee” of 20% of the hedge fund's profit.^ The fund has an adviser who charges a fee for managing the portfolio.

^ Management fee -- Charge for running the fund.

^ What has been the performance of the fund under this manager?
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.There may be a "lock-up" period, during which an investor cannot cash in shares.^ The investment return and principal value of a mutual fund will fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost.

^ In fact, a loaded fund would have to perform several percentage points better than the no-load fund to make up for the fact that the load-fund investor initially gets fewer fund shares.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ As the underlying fund assets need to be sold, and as they may experience a delayed settlement, sometimes exceeding the redemption period originally promised, there is a shortfall.
  • Mutual Funds and Financial Flaws 12 January 2010 0:00 UTC iang.org [Source type: FILTERED WITH BAYES]

.A variation of the hedge strategy is the 130-30 fund for individual investors.^ Global 130/30 Strategy .
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

^ Hedge fund registration and Madoff's investors .
  • Ideoblog: Mutual funds 12 January 2010 0:00 UTC busmovie.typepad.com [Source type: FILTERED WITH BAYES]

^ Rydex/SGI Global 130/30 Strategy .
  • FundAlarm - Mutual Fund Manager Changes (Updated 1st of Each Month) 12 January 2010 0:00 UTC www.fundalarm.com [Source type: General]

Mutual funds vs. other investments

.Mutual funds offer several advantages over investing in individual stocks.^ A foreign mutual fund is a mutual fund that invests in non-US stocks.
  • Mutual Funds Types (Money & Careers: Stock Markets) 12 January 2010 0:00 UTC www.videojug.com [Source type: FILTERED WITH BAYES]

^ Value - may refer to a stock, a mutual fund or a style of investing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Global Fund - is a mutual fund that invests in both U.S. stocks and non-U.S. stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.For example, the transaction costs are divided among all the mutual fund shareholders, which allows for cost-effective diversification.^ Access information on all mutual funds.
  • Rydex SGI :: Mutual Funds Home 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: News]

^ This legislation would not come without a cost—households pay taxes on annual mutual fund capital gains distributions in the range of $100 billion.

^ This can be seen by comparing the average expense ratio on mutual funds offered in the marketplace with the average expense ratio mutual fund shareholders actually paid ( Figure 5.2 ).
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

.Investors may also benefit by having a third party (professional fund managers) apply expertise and dedicate time to manage and research investment options, although there is dispute over whether professional fund managers can, on average, outperform simple index funds that mimic public indexes.^ Index mutual funds also are popular with investors.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ The chances that this investor beat an index fund: 9%.
  • Mutual Fund Madness | Mother Jones 12 January 2010 0:00 UTC motherjones.com [Source type: General]

^ Fund managers rarely beat an index.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.Yet, the Wall Street Journal reported that separately managed accounts (SMA or SMAs) performed better than mutual funds in 22 of 25 categories from 2006 to 2008. This included beating mutual funds performance in 2008, a tough year in which the global stock market lost US$21 trillion in value.^ Value - may refer to a stock, a mutual fund or a style of investing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Global Fund - is a mutual fund that invests in both U.S. stocks and non-U.S. stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Yet as the stock market fell in 2008, a number of 2010 funds lost 40% value.

.[14] [15] In the story, Morningstar, Inc said SMAs outperformed mutual funds in 25 of 36 stock and bond market categories.^ And who said that all mutual funds need to outperform the average?

^ A mutual fund may be a bond fund, in which case the securities in it are bonds; or it may be a combination of bonds and stocks.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ I expect these funds to outperform the market.
  • Mutual Fund Portal India 12 January 2010 0:00 UTC fund.blogono.com [Source type: News]

.Whether actively managed or passively indexed, mutual funds are not immune to risks.^ This was true for both actively managed funds and index mutual funds.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

^ Ban managed mutual funds.

^ Managed mutual funds are a waste of money.

.They share the same risks associated with the investments made.^ Funds investing in bonds have the same interest rate, inflation, and credit risks that are associated with the underlying bonds.

^ The Morgan Keegan fund manager is named in other cases for allegedly failing to disclose the risks associated with the mutual fund investments.

^ Before purchasing any variable product, consider the objectives, risks, charges, and expenses associated with the underlying investment option(s) and those of the product itself.

.If the fund invests primarily in stocks, it is usually subject to the same ups and downs and risks as the stock market.^ The Funds’ use of derivatives, such as futures, options and swap agreements, may expose the Funds’ shareholders to additional risks that they would not be subject to if they invested directly in the securities underlying those derivatives.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

^ Mutual Funds percent power price rate regulations risk securities shares stock swap time trading trust trust deed trustee trusts unit unitholders units unit trust value Copyright © 2009 Funds Investing .
  • Mutual Funds and Financial Advice 12 January 2010 0:00 UTC funds.blogtells.com [Source type: General]

^ The aforementioned companies make no warranty, implied or expressed, to the purchasers of the funds or any member of the public regarding the advisability of investing in index funds or the ability of the aforementioned companies to track general stock market performance.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

Share classes

.Many mutual funds offer more than one class of shares.^ No more risky mutual funds!
  • No-Load Mutual Funds by Michael Saville 12 January 2010 0:00 UTC buy-mutual-funds.com [Source type: General]

^ About two-thirds of all mutual funds offer two or more share classes.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ More on paternalism and mutual funds .
  • Ideoblog: Mutual funds 12 January 2010 0:00 UTC busmovie.typepad.com [Source type: FILTERED WITH BAYES]

.For example, you may have seen a fund that offers "Class A" and "Class B" shares.^ While companies may offer a family of funds under a single umbrella name and common administration for example, the Vanguard Group, Fidelity Investments, or Strong Funds each fund offered is a separately incorporated investment company.

^ As a mutual fund investor, you buy shares (also known as units) of the fund, based on the amount of money you are investing.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ For example, this type of fund may not invest in companies that cause environmental pollution or that have interests in countries with repressive governments.
  • mutual funds 12 January 2010 0:00 UTC www.slideshare.net [Source type: FILTERED WITH BAYES]

.Each class will invest in the same pool (or investment portfolio) of securities and will have the same investment objectives and policies.^ Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing.
  • Rydex SGI :: Mutual Funds Home 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: News]

^ Types of Mutual Funds Mutual funds can be classified by their investment objectives and the types of securities they hold.

^ These are entities that pool investor money to buy the securities that make up the funds portfolio.

.But each class will have different shareholder services and/or distribution arrangements with different fees and expenses.^ Ongoing fund expenses cover portfolio management, fund administration, daily fund accounting and pricing, shareholder services such as call centers and websites, distribution charges known as 12b-1 fees, and other miscellaneous costs of operating the fund.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

^ Some financial advisers who charge investors separately for their services rather than through a load or 12b-1 fee also use no-load share classes.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Financial advisers are compensated for these services, in part, through a particular kind of fund fee, known as a 12b-1 fee, which is included in a fund’s expense ratio.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

.These differences are supposed to reflect different costs involved in servicing investors in various classes; for example, one class may be sold through brokers with a front-end load, and another class may be sold direct to the public with no load but a "12b-1 fee" included in the class's expenses (sometimes referred to as "Class C" shares).^ Back-end-load shares, which are primarily Class B shares, typically do not have a front-end load.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end load = 0 percent and CDSL > 2 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end-load shares also often have a 12b-1 fee of about 0.25 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

.Still a third class might have a minimum investment of $10,000,000 and be available only to financial institutions (a so-called "institutional" share class).^ These are called "Class B" shares.
  • Picking a No-Load Mutual Fund | Personal Finance Corner 12 January 2010 0:00 UTC www.allbusiness.com [Source type: News]

^ Custodian -- Bank or other financial institution that safeguards mutual fund securities and may respond to transactions only by designated fund officers.

^ Some financial advisers who charge investors separately for their services rather than through a load or 12b-1 fee also use no-load share classes.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

.In some cases, by aggregating regular investments made by many individuals, a retirement plan (such as a 401(k) plan) may qualify to purchase "institutional" shares (and gain the benefit of their typically lower expense ratios) even though no members of the plan would qualify individually.^ Load funds often do not charge loads for purchases of fund shares through such retirement plans.
  • Section 5: Mutual Fund Fees and Expenses 12 January 2010 0:00 UTC www.icifactbook.org [Source type: FILTERED WITH BAYES]

^ Most of these fund distributions are made in December and many fund companies give estimates of these distributions on their websites in late November and early December, which can help existing and potential investors avoid some taxable gains.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ Participants in 401 plans do not want the government to require them to convert a portion of their 401 assets to annuities, according to the results of a survey of about 3,000 households released today by the Investment Company Institute.
  • Mutual Funds News - Topix 12 January 2010 0:00 UTC www.topix.com [Source type: News]

[16]As a result, each class will likely have different performance results. [17]
.A multi-class structure offers investors the ability to select a fee and expense structure that is most appropriate for their investment goals (including the length of time that they expect to remain invested in the fund).^ Fund investors never know exactly what they're invested in.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ The total return figures reflect the reinvestment of investment income and capital gains and losses, and are net of expenses which include a contract fee, an expense risk fee, administrative charges, a distribution expense charge and Underlying Funds fees and expenses.
  • Mutual of America - Fund Details 12 January 2010 0:00 UTC www.mutualofamerica.com [Source type: FILTERED WITH BAYES]

^ Privacy & Security Terms & Conditions About Eaton Vance Careers Business Continuity Sitemap Contact Before investing in any Eaton Vance fund, prospective investors should consider carefully the fund's investment objective(s), risks, and charges and expenses.

[17]

Load and expenses

.A front-end load or sales charge is a commission paid to a broker by a mutual fund when shares are purchased, taken as a percentage of funds invested.^ A load is a percentage fee that is paid to the fund and/or to the broker, either by reducing the dollar amount purchased or the proceeds of a sale.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Back-end-load shares, which are primarily Class B shares, typically do not have a front-end load.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end load = 0 percent and CDSL > 2 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

.The value of the investment is reduced by the amount of the load.^ A load is a percentage fee that is paid to the fund and/or to the broker, either by reducing the dollar amount purchased or the proceeds of a sale.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ If you pay $5,000 to buy a fund with a 5% load, the $250 fee reduces the purchase amount to $4,750 worth of the fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ After one year, which is considered short-term, the amount available may have diminished because of fluctuation in the value of your investment.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Some funds have a deferred sales charge or back-end load.^ A "back-end" or deferred fee is charged when the fund is sold.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Back-end load 2 .
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ A deferred fee, or "back-end" load deducts the percentage from the proceeds at the time of sale of the fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.In this type of fund an investor pays no sales charge when purchasing shares, but will pay a commission out of the proceeds when shares are redeemed depending on how long they are held.^ I. Mutual Funds and how they are Gamed .
  • Mutual Funds and Financial Flaws 12 January 2010 0:00 UTC iang.org [Source type: FILTERED WITH BAYES]

^ Find out how long the manager has been with this fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ If you do not pay the commission, then the fund pays it.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.Another derivative structure is a level-load fund, in which no sales charge is paid when buying the fund, but a back-end load may be charged if the shares purchased are sold within a year.^ Back-end-load shares, which are primarily Class B shares, typically do not have a front-end load.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ A "back-end" or deferred fee is charged when the fund is sold.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ You can purchase front end loaded funds and the advisor has the option of charging you 0-2%.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

.Load funds are sold through financial intermediaries such as brokers, financial planners, and other types of registered representatives who charge a commission for their services.^ The financial planner will get his commission for selling you the fund.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ There are good funds that do not charge loads.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Load classes generally serve investors who own fund shares purchased through financial advisers; no-load fund classes usually serve investors who purchase shares without the assistance of a financial adviser or who choose to compensate the financial adviser separately.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

.Shares of front-end load funds are frequently eligible for breakpoints (i.e., a reduction in the commission paid) based on a number of variables.^ Back-end-load shares, which are primarily Class B shares, typically do not have a front-end load.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ Front-end load = 0 percent and CDSL > 2 percent.
  • Section 2: Recent Mutual Fund Trends 12 January 2010 0:00 UTC www.icifactbook.org [Source type: News]

^ The number of no-load funds is diminishing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

These include other accounts in the same fund family held by the investor or various family members, or committing to buy more of the fund within a set period of time in return for a lower commission "today".
.It is possible to buy many mutual funds without paying a sales charge.^ Never, ever, buy a mutual fund.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ This legislation would not come without a cost—households pay taxes on annual mutual fund capital gains distributions in the range of $100 billion.

^ To be sure the commissions already paid by the mutual fund company to investment firms is recovered, a penalty is charged to the investor for cashing out of the fund prior to the five years necessary to recover the sales expense.

.These are called no-load funds.^ The number of no-load funds is diminishing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ What about “no load” funds?
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ And, my book A Guide to No-Load Mutual Funds is the best place you can start!
  • No-Load Mutual Funds by Michael Saville 12 January 2010 0:00 UTC buy-mutual-funds.com [Source type: General]

.In addition to being available from the fund company itself, no-load funds may be sold by some discount brokers for a flat transaction fee or even no fee at all.^ All funds have a load on it.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ Load - refers to a fee charged by a mutual fund company.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ The number of no-load funds is diminishing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.(This does not necessarily mean that the broker is not compensated for the transaction; in such cases, the fund may pay brokers' commissions out of "distribution and marketing" expenses rather than a specific sales charge.^ If you do not pay the commission, then the fund pays it.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ The Wall Street Journal notes 2007 may turn out to be the year of the biggest taxable fund distributions in history - eclipsing even 2000.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ These accounts aggregate all the orders and assets of their customers, rather than using the subaccounting features that may be available via the mutual fund's transfer agent [ Sub ] .
  • Mutual Funds and Financial Flaws 12 January 2010 0:00 UTC iang.org [Source type: FILTERED WITH BAYES]

.The purchaser is therefore paying the fee indirectly through the fund's expenses deducted from profits.^ A load is a percentage fee that is paid to the fund and/or to the broker, either by reducing the dollar amount purchased or the proceeds of a sale.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ If a fund manager sells a stock for a profit and has no losses to counter the gain, you are liable to pay a tax on that profit even if you haven't sold any of your shares in the fund.
  • Mutual Funds and Taxes | MAXfunds.com 12 January 2010 0:00 UTC www.maxfunds.com [Source type: General]

^ The fees and expense ratio on an index fund are lower and their fund manager isn’t paid as much as a mutual fund manager – any idiot can manage an index fund.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

)
.No-load funds include both index funds and actively managed funds.^ The number of no-load funds is diminishing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ What about “no load” funds?
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ Fund managers rarely beat an index.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.The largest mutual fund families selling no-load index funds are Vanguard and Fidelity, though there are a number of smaller mutual fund families with no-load funds as well.^ There’s no reason to buy an index fund from anyone else.

^ There are good funds that do not charge loads.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ (The exception to this is the Vanguard 500 Index fund, which is an S&P 500 index fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Expense ratios in some no-load index funds are less than 0.2% per year versus the typical actively managed fund's expense ratio of about 1.5% per year.^ Also the tax efficiency of index funds is far better than for active managers.

^ Ah, but what about the backend loaded funds?
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ Expense ratio is less than 2%.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.Load funds usually have even higher expense ratios when the load is considered.^ A fund’s investment objectives, risks, charges and expenses should be considered carefully before investing.
  • John Hancock Funds - Mutual Funds - Daily Prices 12 January 2010 0:00 UTC www.jhfunds.com [Source type: Reference]

^ Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

^ I wrote A Guide to No-Load Mutual Funds as a way to even out the playing field.
  • No-Load Mutual Funds by Michael Saville 12 January 2010 0:00 UTC buy-mutual-funds.com [Source type: General]

.The expense ratio is the anticipated annual cost to the investor of holding shares of the fund.^ Expense Ratio - is the cost of operation of a mutual fund.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ As a mutual fund investor, you buy shares (also known as units) of the fund, based on the amount of money you are investing.
  • Mutual Funds for Wise Bloggers | Wise Bread 12 January 2010 0:00 UTC www.wisebread.com [Source type: General]

^ You have to shop around and find funds with low expense ratios that consistently beat the market.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.For example, on a $100,000 investment, an expense ratio of 0.2% means $200 of annual expense, while a 1.5% expense ratio would result in $1,500 of annual expense.^ This means that, instead of enjoying a growth of perhaps 10%, as their investment rises in value, the investor would only earn 8%.

^ He’s hoping the stimulus package will lead to the creation of 500,000 jobs yet this year that would otherwise not exist.
  • Mutual Fund Portal India 12 January 2010 0:00 UTC fund.blogono.com [Source type: News]

^ Example investor B B's worksheet results pointed to mutual funds as appropriate for his $3,000 and conservative, long-term profile.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

.These expenses are before any sales commissions paid to purchase the mutual fund.^ Partnership—made agreements with over 80 broker-dealers that these broker-dealers were to promote the sale of Putnam funds.

^ A load is a percentage fee that is paid to the fund and/or to the broker, either by reducing the dollar amount purchased or the proceeds of a sale.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ Investors should consider the investment objectives, risks, charges and expenses of a fund carefully before investing.
  • Rydex SGI :: Mutual Fund Profiles 12 January 2010 0:00 UTC www.rydex-sgi.com [Source type: Academic]

.Many fee-only financial advisors strongly suggest no-load funds such as index funds.^ The number of no-load funds is diminishing.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ What about “no load” funds?
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ As an advisor, I would suggest my clients to invest in the products which best fit their financial situation and the level of risk tolerance which they are capable to take.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

.If the advisor is not of the fee-only type but is instead compensated by commissions, the advisor may have a conflict of interest in selling high-commission load funds.^ A load is a percentage fee that is paid to the fund and/or to the broker, either by reducing the dollar amount purchased or the proceeds of a sale.
  • Mutual Fund Tutorial 12 January 2010 0:00 UTC www.fizone.com [Source type: FILTERED WITH BAYES]

^ The shares I sold were typically A shares & had a 5.75% commission, but you should stick to buying funds in the SAME FUND FAMILY to get a reduced sales-load once you hit a breakpoint.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

^ The financial planner will get his commission for selling you the fund.
  • The Mutual Fund Scam | John Chow dot Com 12 January 2010 0:00 UTC www.johnchow.com [Source type: General]

See also

References

  1. ^ "US SEC answers on Mutual Funds". U.S. Securities and Exchange Commission (SEC). http://www.sec.gov/answers/mutfund.htm. Retrieved 2006-04-11. 
  2. ^ "Princeton Alumni Weekly article on pioneering work of John Bogle '51". http://www.princeton.edu/~paw/web_exclusives/features/features_19.html. 
  3. ^ "About ICI". Investment Company Institute (ICI). http://www.ici.org/stats/mf/trends_10_07.html. Retrieved 2007-12-01. 
  4. ^ Worldwide Mutual Fund Assets and Flows, Fourth Quarter 2007
  5. ^ "Investment Companies". U.S. Securities and Exchange Commission (SEC). http://www.sec.gov/answers/mfinvco.htm. Retrieved 2006-04-11. 
  6. ^ "Final Rule: Registration Form Used by Open-End Management Investment Companies: Sample Form and instructions". U.S. Securities and Exchange Commission (SEC). http://www.sec.gov/rules/final/33-7512f.htm#E12E2. Retrieved 2008-09-25. 
  7. ^ "Frequently Asked Questions About Bond Mutual Funds". Investment Company Institute. http://www.ici.org/funds/abt/faqs_bond_funds.html. Retrieved 2006-04-11. 
  8. ^ "U.S. Indexes: Construction & Methodology". http://www.russell.com/US/Indexes/US/methodology.asp. Retrieved 2006-04-23. 
  9. ^ Mark Carhart (March 1997). "On Persistence in Mutual Fund Performance". Journal of Finance 52 (1): 56–82. 
  10. ^ M. Grimblatt and S. Titman (1989). "Mutual Fund Performance: an Analysis of Quarterly Portfolio Holdings". Journal of Business 62: 393–416. doi:10.1086/296468. 
  11. ^ "Frequently Asked Questions About Bond Mutual Funds". Investment Company Institute. http://www.ici.org/funds/abt/faqs_bond_funds.html. Retrieved 2006-04-11. 
  12. ^ "Frequently Asked Questions About Money Market Mutual Funds". Investment Company Institute. http://www.ici.org/funds/abt/faqs_money_funds.html. Retrieved 2006-04-11. 
  13. ^ "Hedging Your Bets: A Heads Up on Hedge Funds and Funds of Hedge Funds". U.S. Securities and Exchange Commission (SEC). http://www.sec.gov/answers/hedge.htm. Retrieved 2006-04-11. 
  14. ^ "SMAs beat funds in 2008". The Wall Street Times. http://online.wsj.com/article/SB123679669243098151.html. 
  15. ^ "Global stock market losses total $21 trillion". Times Online. http://business.timesonline.co.uk/tol/business/markets/article5705526.ece. 
  16. ^ Christine Benz. "Which Is the Right Fund Share Class for You?". Morningstar (registration required). http://news.morningstar.com/article/article.asp?id=142323. Retrieved 2006-04-11. 
  17. ^ a b Sources of Information "Invest Wisely: An Introduction to Mutual Funds". U.S. Securities and Exchange Commission (SEC). http://www.sec.gov/investor/pubs/inwsmf.htm Sources of Information. Retrieved 2006-04-11. 

Further reading


Simple English

A mutual fund is a kind of investment that uses money from many investors to invest in stocks, bonds or other types of investment. A fund manager (or "portfolio manager") decides how to invest the money, and for this he is paid a fee, which comes from the money in the fund.

Mutual funds are usually "open ended", meaning that new investors can join into the fund at any time. When this happens, new units, which are like shares, are given to the new investors.

There are thousands of different kinds of mutual funds, specializing in investing in different countries, different types of businesses, and different investment styles. There are even some funds that only invest in other funds.

Other pages

References


Citable sentences

Up to date as of December 16, 2010

Here are sentences from other pages on Mutual fund, which are similar to those in the above article.








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