what do mean by mutual funds?

Question

mutual funds or fixed bonds

Answer 1

Mutual funds provide you with a cost-effective alternative to direct purchases of stocks or bonds – you don't need to be wealthy to invest in them, and depending on the fund you choose, shares can be purchased with little or no minimum investment. Mutual funds offer you a number of benefits including:

Diversification*
Professional Management
Liquidity
Flexibility
Convenience

As a shareholder, generally you also receive easy-to-read account statements, detailing information on account values, share transactions, and dividend and capital gains distributions.

* Diversification cannot eliminate the risk of investment loss.

There are no-load mutual funds are mutual funds without a sales charge/commission on the trade activity.

You can see a listing of no-load mutual funds on most of the top brokerage sites, for example:
http://www.schwab.com/public/schwab/research_strategies/mutual_funds/directory/list.html?filter=OneSource&sortBy=&selection=3&Go=Go&refid=P-1319717&refpid=P-1319720

A fixed-rate bond is a bond with a fixed coupon (interest) rate. You may want to check on a bond's rating before investing in it.
http://personal.fidelity.com/products/fixedincome/bondratings.shtml

And, read this about the risks of fixed income investing:
http://personal.fidelity.com/products/fixedincome/firisksoffixed.shtml.cvsr

Answer 2

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities (usually stocks or bonds). When you invest in a mutual fund, you are buying shares (or portions) of the mutual fund and become a shareholder of the fund.

Mutual funds are one of the best investments ever created because they are very cost efficient and very easy to invest in (you don't have to figure out which stocks or bonds to buy).

Answer 3

some investors discover mutual money a rewarding funding, because they often have right here good factors: professional administration: professional funds managers analyze, opt for, and regulate the performance of the securities offered by technique of the fund. Diversification: Diversification is a fruitful funding approach that could be summarized as not putting all the eggs in a unmarried basket. Dividing your investments throughout many organizations and market sectors can cut back your chance if a business enterprise or sector underperforms. For some investors, diversification may nicely be actual performed by technique of possessing mutual money instead of shopping for human being stocks or bonds. Affordability: some mutual money enable investors with smaller quantity of money to make investments by technique of reducing the pound quantities for initial purchases, destiny purchases, or both. Liquidity: Mutual fund investors can actual promote their stocks alongside with any prices and costs payable if any even as redeeming. yet some good factors of mutual money is also dealt with as risks like:

Answer 4

An investment programmed funded by shareholders that trades in diversified holdings and is professionally managed. Yes really a point that will be considerable to achieve for all mutual funds having own pros and cons...according to current market scenario, we should invest carefully in this but this will gives you better returns.

Answer 5

Mutual funds are pool of securities. The main advantage of mutual funds are risk diversification,and high rate return. In case of bonds there is no risk and rate of return is comparatively low.

Answer 6

Mutual funds are only as good as what they invest in. Find out if there defensive or cyclical. also find out if they are large cap or small cap.

Answer 7

it is fund which invests in a number of companies pon your behalf, so that technicall y you do not undergo loss, though you may. They often have heavy fees to open and close. I consider them a bad investment