commodities? stocks? bonds? and etf? and what about mutual fund? isn't investing money in the mutual fund same as the 401k but without matching by the company?
2006-08-30 09:06:24 · 3 answers · asked by christopher d 3 in Business & Finance ➔ Investing
What exactly are you asking? Definitions?
Commodities are underlying core items like wheat, gold, crude oil, corn, cattle, etc.
Stocks are typically companies.
Bonds are fixed rate of return assets that return a predetermined interest over a certain amount of time. The price you pay fluctuates based on interest rates at the time of purchase.
ETFs are exchange traded funds. These are typically bundles of stocks, that trade like a stock. QQQQ's an ETF of the NASDAQ 100. It represents the Nasdaq 100 but trades like a stock.
Holders are similar to ETF and also trade like a stock. OIS is a holder for oil services for example.
Mutual fund is a bundle of stocks as well, except it's managed by a holding company. And as such, they usually extract a management fee of up to 2% in addition to any "load" that you might pay on top of it. In gereral, I'd stay away from mutual funds once you are better educated.
You can be as diversified, or better diversified with ETFs, than you can be with mutual funds, while having the liquidity of stocks and NOT have to pay the extra management fees for someone just performing "average"
Hope that helps!
2006-09-05 12:02:27 · answer #1 · answered by Yada Yada Yada 7 · 2⤊ 0⤋
Your questions is (putting it delicately) hard to understand. Check out www.investopedia.com or finance.yahoo.com for some help. As for your 401k/MF question, here's the answer.
A mutual fund is an investment that allows you to purchase a diversified portfolio in fractional shares. The fund can invest in anything as long as it follows the objectives laid out in the prospectus.
A 401(k) in an employer sponsored tax-qualified plan that could allow you to invest in mutual funds in the plan. It could also be very restrictive and force you to buy some other investment, including company stock, though this is becoming very rare.
2006-08-30 09:18:08 · answer #2 · answered by Bill F 2 · 0⤊ 0⤋
commodities is nothing but commodity like wheat sager and stock is nothing but shares and debentures and mutual fund is nothing but a combination of stock market instrument like shares and debentures
2006-09-04 20:54:13 · answer #3 · answered by sahil_mohd521 2 · 0⤊ 0⤋