2006-12-19 04:35:03 · 6 answers · asked by Manju S 1 in Business & Finance ➔ Investing
The idea behind a mutual fund is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds.
Every mutual fund has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets.
2006-12-19 04:42:10 · answer #1 · answered by Ron H 2 · 1⤊ 0⤋
For people who are leery of the volatility of a single stock, they can choose to invest in many at once by buying a mutual fund , often focused on a sector like energy or telecommunications or whatever .
There is a learning section about 1/2 way down on this Yahoo finance page
http://finance.yahoo.com/funds
2006-12-19 04:46:04 · answer #2 · answered by kate 7 · 0⤊ 0⤋
These are open-end funds that are not listed for trading on a stock exchange and are issued by companies which use their capital to invest in other companies. Mutual funds sell their own new shares to investors and buy back their old shares upon redemption. Capitalization is not fixed and normally shares are issued as people want them.
2006-12-19 04:39:22 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Mutual Funds are schemes in which the companies invest in stocks/share on behalf of u and return you the profit in terms of the dividends or by the NAV's. The NAV's based on the investment and they increase or decrease based on the portfolio the mutual fund has been invested in.
Also please watch for the entry/ exit load beause they charge you for entering or leaving their fund.
Please check for a mutual fund which is in long term and equity based
2006-12-19 04:47:37 · answer #4 · answered by Sumanth 3 · 0⤊ 0⤋
I do a research on MF and fund management and wealth creation
You can reach me on vjoseph9810895981@yahoo.com
it is free
2006-12-19 06:15:53 · answer #5 · answered by JVMAssociates 1 · 0⤊ 0⤋
visit amfiindia site
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rediff business, moneycontrol r also good
try commodity future
details on my blog
2006-12-19 16:17:48 · answer #6 · answered by dinu_pawar 5 · 0⤊ 0⤋