This may sound a very silly question but I really do not know the answer.
2006-07-11 09:43:54 · 17 answers · asked by starfield 2 in Business & Finance ➔ Investing
Mutual Funds are Funds the investor can buy into to diversify their investment without buying several stocks.
A Mutual Fund has a manager that decides what stocks to buy and when. He manages the fund and attempts to make money for the fund's investors. Funds almost always have rules about how much of the capital is invested in which sector, for example a fund ARTQX has 5% in Information stocks, like software hardware. 53% in Services like Health care, business services and 42% in Manufacturing like Consumer Goods and Energy.
A website that has a lot of information on most Mutual Funds is Morningstar. (See Link below) You can use it to evaluate with fund is best for what you think is going to be a growing sector in the future.
The best thing about Morningstar is it has an evaluation of Risk and Return. The best Funds have low risk and above average returns. Check it out!
2006-07-11 09:45:36 · answer #1 · answered by Ken C. 6 · 0⤊ 0⤋
Groups of stocks. Essentially, a person or group of people buy many stocks and declare the sum of the stocks to be a 'fund'. You then invest in the fund rather than the individual stocks.
The idea is the fund is the sum of all the stocks. If one stock looses its value you'll be ok b/c the rest will keep the fund held up in value. On the other hand, if one stock gains a lot of money you're not making a lot either.
2006-07-11 09:48:47 · answer #2 · answered by john_lewin 2 · 0⤊ 0⤋
It's a pooled investment shared by many investors. There is usually a mangager/team that determines what the fund invests in. A lot are a specific type of fund (e.g. technology, transportation, utilities, stock indexes). It's a way for a small investor to diversify without having to keep track of a large portfolio.
2006-07-11 09:47:31 · answer #3 · answered by Anonymous · 0⤊ 0⤋
They are many stocks that are bought and sold as 1 fund to try to spread the risk of investing out. This way you are not putting all you eggs in one basket, but rather an industry or large capital or some capital etc.
Past earnings are not a guarantee of future earnings.
Peace out.
2006-07-11 09:46:30 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/4ed13
2015-01-25 00:04:00 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Mutual funds are collections of individual stocks that are managed by a company. The theory is that owning small parts of several companies is less volatile than owning stock in one company.
2006-07-11 09:45:45 · answer #6 · answered by Vosot 3 · 0⤊ 0⤋
Mutual funds are funds you share with a mutual friend. Email me and you can add me to your account.
2006-07-11 09:45:50 · answer #7 · answered by zabac99 1 · 0⤊ 0⤋
They are investment accounts that are used to invest in different type of stocks it should be of a lower risk since it balances the gains and the lose of any interaction.
2006-07-11 09:50:46 · answer #8 · answered by anguir 2 · 0⤊ 0⤋
Funds that agree with each other. I'm sorry I really don't know either but I could resist a little joke.....lol
2006-07-11 09:46:11 · answer #9 · answered by celtic925 2 · 0⤊ 0⤋
An Investment option - group of companies that banks or investors put your money in. Hopefully it generated dividends but not always.
2006-07-11 09:45:50 · answer #10 · answered by ? 6 · 0⤊ 0⤋