How does Mutual Fund companies invest in stocks... How long they invest in one script & change...?

Answer 1

They are wholesale buyers and sellers of stocks, bonds and short term cash investments. They have special methods of disposing off stock, or buying 100K shares of Reliance!

They invest as long as their model tells them to hold. ALthough most funds will try to hold over the 1 year limit otherwise they have to declare it as a short term gain. A lot of investors do not like that.

In the US, the fund industry has gone crazy with over 10,000 mutual fund. There also over 500 ETFs not, and ETFs are the new version of Mutual Funds, and they are called XTFs. There will be 1000 to 2000 more by 12/2008.

KKP

Answer 2

Different mutual funds have different investment philosophies, so you have to understand this.

A bond fund doesn't buy equities

other than that, philosophy can be...
to pay an income
to grow in value
to buy specific sectors (gold) (Resources) (housing)
to buy only blue chip companies
To buy only Noth American Stocks
To buy world stocks
To buy only asian stocks

the list is endless, but they research companies within their philosophy and buy the ones they like, they usually have rules that limit the % that a certain stock can make up their total investment.

When they think other stocks are better value than some they own, they sell one and buy the other.

Answer 3

not all in stk some r for FD
few 4 both

ratio of tradingby MF called churing ration

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Answer 4

right here is one component to recollect concerning the Roth IRA account. there isn't any tax on it the place as there is on your 401k. This turns into significant whilst thinking your asset combination. earnings producing investments are taxed on the great tax fee as would be your 401k. for this reason that's sensible to take a place a minimum of a few of your 401k in earnings producing sources--bonds, LPs, REITs. The earnings from each of those is taxed on the great tax fee besides. Now by means of fact the Roth IRA isn't taxed, it is likewise sensible to place those varieties of sources into the Roth IRA additionally. and likewise fairness investments. What you overlooked to point are investments exterior of those 2 autos. in case you have some, they ought to be investments that is taxed on the capital positive factors fee--fairness investments. certainly, except you're contained in the optimum tax bracket that's sensible to have a ingredient to your fairness investments exterior of a 401k. by using doing so your entire tax invoice would be decreased, notably while you're a lengthy time era investor. in case you have the least hankering to take a place a number of your money in gold and silver those unquestionably ought to be interior of a Roth IRA. the two are taxed as collectibles in any different case. yet another component to evaluate in regard to the 401k is that throughout years to come the tax fee could certainly be bigger, possibly lots bigger, than it at the instant is. considering you incredibly have not any decision of putting non-mutual fund investments interior of a 401k different than for possibly enterprise inventory, it actual does make experience to take a place Roth IRA money in enterprise shares incredibly than mutual money. yet be careful. that's amazingly tempting for many to invest with their Roth IRA account notably brief time era paying for and merchandising which in any different case could be taxed on the great tax fee. that is a reliable thank you to cut back that fee of the Roth account. Be merely a splash careful. make investments contained in the likes of MCD, WMT, JNJ, BDX, KO, and so forth. or possibly ETP with its 8% dividend or PAA with its 7.5% dividend. and don't make investments it in fewer than 5 distinctive agencies.

Answer 5

depending market condition and componies perfomance