Ppt on mutual funds

Chapter 21 The Mutual Fund Industry. Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 21-2 Chapter Preview We study why mutual funds have.

types of mutual funds, their regulation, and scandals in the mutual fund industry. Topics include: – The Growth of Mutual FundsMutual Fund Structure – Investment Objective Classes – Fee Structure of Investment Funds Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 21-3 Chapter Preview (cont.) – Regulation of Mutual Funds – Hedge Funds – Conflicts of Interest in the Mutual Fund Industry Copyright © 2006 Pearson Addison-Wesley. All rights reserved. 21-4 Mutual Funds Mutual funds pool the/


MUTUAL FUNDS AN OVERVIEW. MYTHS ABOUT MUTUAL FUNDS 1.Mutual Funds invest only in shares. 2. Mutual Funds are prone to very high risks/actively traded.

scheme is kept open for a specific interval and after that it operates as a close ended scheme. III ACCORDING TO PORTFOLIO INCOM E FUNDS GROW TH FUNDS BALANC ED FUNDS STOCK FUNDS BOND FUNDS SPECIALI SED FUNDS LEVERA GE FUNDS TAXATIO N FUNDS MONEY MARKET MUTUAL FUNDS a)INCOME FUNDS: The schemes having highest priority to generate maximum current income are termed as income schemes. The main aim of these/


1 Mutual Funds Definition: Financial intermediary through which savers pool their monies for collective investment, primarily in publicly trades securities.

price declines. If stocks starts to pay low dividends, less incentive to hold on to the fund. 32 Types of Mutual Funds (Equity Fund Objectives) GROWTH: primary objective is capital appreciation; dividend payments are decidedly a secondary objective. Portfolio/ grow; bond prices are inversely related to interest rates. 43 Types of Bond Funds 44 Types of Bond Funds 45 Types of Mutual Funds (Bond Fund Objectives) BOND FUND objectives are defined using criteria such as: Types of bonds - corporate, government,/


Chapter 3 Investments Funds.

by purchasing stocks and bonds through brokers and other intermediaries 3- Hold securities indirectly through investment companies, pension funds, & mutual funds Indirect Investing Refers to buying and selling the shares of intermediaries that hold a portfolio of securities Shares / This will have a great deal of influence on the investor’s purchase decision Types of Mutual Funds (cont.) 1- Money Market Funds (MMFs) Objective is a high level of income and liquidity Investments include short-term money /


Planning Your Financial Future, 4e by: Boone, Kurtz & Hearth Mutual Funds Chapter 14.

charged for a longer holding period 22 Fees and Expenses  Trend is toward low front-end loads or no-loads No charges associated with buying or selling the mutual fund  Over half of all mutual funds are no-load  Annual operating expenses Includes fees paid to portfolio manager, transaction costs, printing costs Paid from investment income before it is distributed  Average is about 1/


Copyright © 2012 Pearson Prentice Hall. All rights reserved. CHAPTER 20 The Mutual Fund Industry.

, the various types of mutual funds, their regulation, and scandals in the mutual fund industry. Topics include: ─The Growth of Mutual FundsMutual Fund Structure ─Investment Objective Classes ─Fee Structure of Investment Funds © 2012 Pearson Prentice Hall. All rights reserved. 20-3 Chapter Preview (cont.) ─Regulation of Mutual Funds ─Hedge Funds ─Conflicts of Interest in the Mutual Fund Industry © 2012 Pearson Prentice Hall. All rights reserved. 20-4 Mutual FundsMutual funds pool the resources of many/


CHAPTER 23 Mutual Fund Operations. Copyright© 2002 Thomson Publishing. All rights reserved. Background on Mutual Funds.

Value Can be Affected by Expenses (Assume Initial Investment of $10,000 and a Return before Expenses of 9.2%) Copyright© 2002 Thomson Publishing. All rights reserved. Background on Mutual Funds  Corporate control by mutual fundsMutual funds are large shareholders in companies whose stock they hold (Fidelity controls 5% of stock traded on NYSE; it owns controlling share in more than 700 corporations)  Managers may/


McGraw-Hill/Irwin Copyright © 2005 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 4 Mutual Funds and Other Investment Companies.

Funds Net Asset Value Mutual Fund Operations Mutual Fund Organization and Creation Taxation of Investment Companies The Fund Prospectus and Annual Report Mutual Fund Costs and Fees Types of Expenses and Fees Expense Reporting Why Pay Loads and Fees? Short-Term Funds Money Market Mutual Funds Money Market Deposit Accounts 4-45 Review: Mutual Funds Long-Term Funds Stock Funds Taxable and Municipal Bond Funds Stock and Bond Funds Mutual Fund Objectives: Recent Developments Mutual Fund Performance Mutual Fund/


1 Chapter 23 Mutual Fund Operations Financial Markets and Institutions, 7e, Jeff Madura Copyright ©2006 by South-Western, a division of Thomson Learning.

income as dividend payments They distribute capital gains resulting from the sale of securities within the fund Mutual fund share price appreciation Mutual fund classifications  Stock mutual funds, bond mutual funds, or money market mutual funds (see next slide) Background on Mutual Funds (cont’d) 15 Background on Mutual Funds (cont’d) Distribution of Investment in Mutual Funds 16 Expenses incurred by shareholders  Mutual funds pass their expenses on to their shareholders  Expenses can be compared among/


Department of Banking and Finance SPRING 2007-08 Mutual Funds and Other Investment Companies by Asst. Prof. Sami Fethi.

Benchmark Shares which are shares in portfolios of foreign stock market indexes). Investment Management © 2005 Sami Fethi, EMU, All Right Reserved. Ch 4 : Mutual fund 57 Exchange Traded Funds Exchange Traded Funds have become popular and offer investors alternatives to traditional mutual funds. ETFs allow investors to trade portfolios of indexes as individual shares of stock. A wide variety of indexes, both international and domestic can/


© 2013 Pearson Education, Inc. All rights reserved.15-1 Chapter 15 Mutual Funds: An Easy Way to Diversify.

constant $1 NAV, and have minimal expense ratios Tax-exempt money market fund Government securities money market mutual fund © 2013 Pearson Education, Inc. All rights reserved.15-18 Stock Mutual Funds Aggressive growth funds Small company growth funds Growth funds Growth-and-income funds Sector funds Index funds International funds © 2013 Pearson Education, Inc. All rights reserved.15-19 Balanced Mutual Funds Tries to balance objectives of long-term growth, income, and stability Hold/


M.F.S. MUTUAL FUND. Mutual Funds: Chapter Objectives To understand the Concept & Structure of mutual funds, Mutual Fund development/s in India and To.

M.F.S. MUTUAL FUND Mutual Funds: Chapter Objectives To understand the Concept & Structure of mutual funds, Mutual Fund development/s in India and To understand the types of Mutual fund Schemes. Mutual Fund: Meaning A mutual fund is a financial intermediary that pools the savings of investors for collective investment in a diversified portfolio of securities. A fund is “mutual” as all of its returns, minus its expenses, are shared by the fund’s investors. Mutual fund is a/


Chapter Mutual Funds McGraw-Hill/IrwinCopyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. 4.

–Why Pay Loads and Fees? Short-Term Funds –Money Market Mutual Funds –Money Market Deposit Accounts 4-48 Chapter Review, II. Long-Term Funds –Stock Funds –Taxable and Municipal Bond Funds –Stock and Bond FundsMutual Fund Objectives: Recent Developments Mutual Fund Performance –Mutual Fund Performance Information –How Useful are Fund Performance Ratings? Closed-End Funds, Exchange Traded Funds, and Hedge Funds –Closed-End Funds Performance Information –The Closed-End Fund Discount Mystery –Exchange Traded/


Mutual Funds and Regulation Compensation for Mutual Fund Sales Todd Cipperman, Esq., Cipperman & Company November 1, 2007.

greater than.75%; service fees less than.25% Marketing: Many brokers do not like to sell “load” funds Compensation for Mutual Fund Sales  Confidential  Copyright 2007 FINRA 7 Front-End Sales Loads – Typical Schedule Amount of PurchaseAs a % / Compliance Officers (See In re CapitalWorks Investment Partners and Mark Correnti)  In re Treadway Compensation for Mutual Fund Sales  Confidential  Copyright 2007 FINRA 34 Conclusion Brokerage Firms, Advisers and their Reps demand compensation Tremendous /


Chapter 21 The Mutual Fund Industry. Copyright © 2009 Pearson Prentice Hall. All rights reserved. 21-2 Chapter Preview Suppose you wanted to start savings.

various types of mutual funds, their regulation, and scandals in the mutual fund industry. Topics include: – The Growth of Mutual FundsMutual Fund Structure – Investment Objective Classes – Fee Structure of Investment Funds Copyright © 2009 Pearson Prentice Hall. All rights reserved. 21-4 Chapter Preview (cont.) – Regulation of Mutual Funds – Hedge Funds – Conflicts of Interest in the Mutual Fund Industry Copyright © 2009 Pearson Prentice Hall. All rights reserved. 21-5 Mutual Funds Mutual funds pool the/


Fund Types and Comparative Performance, Efficient Markets, Asset Allocation, and Morningstar Analysis PART III.

that during the fourth quarter of 1999 and first quarter of 2000, there were significant outflows from “value” mutual funds, precisely the funds with the most attractive relative valuations. So not only did more money flow into the market at an inopportune/ buy-and- hold returns and dollar-weighted returns. The tendency for investors to alter the composition of their mutual fund portfolios exaggerates the differentials between the overall returns to the stock market and the returns earned by the average /


MUTUAL FUND Topic-7. Chapter-8 Outline  What is a mutual fund  Benefits of investing in MF  Structure of MF  History of MF  Terminology associated.

to compare returns over similar periods. Type of Mutual Fund Schemes Structure Open Ended Funds Close Ended Funds Investment Objective Growth Funds Income Funds Guilt Funds Floating Rate Funds Other Schemes Index Schemes Tax savings funds Exchange traded funds Type of Mutual Fund Schemes Investment Objective Other Schemes Fixed Maturity Plans Balanced Funds Money Market Funds Gold exchange Traded funds Sector funds Value funds  Open-end Funds An open-ended fund gives the investors an option to redeem and/


1 Investment Objectives and Risks of Stock and Bond Funds Investor must clearly evaluate his/her own goals. What is the purpose of the investment? What.

price declines. If stocks starts to pay low dividends, less incentive to hold on to the fund. 22 Types of Mutual Funds (Equity Fund Objectives) GROWTH: primary objective is capital appreciation; dividend payments are decidedly a secondary objective. Portfolio/ grow; bond prices are inversely related to interest rates. 33 Types of Bond Funds 34 Types of Bond Funds 35 Types of Mutual Funds (Bond Fund Objectives) BOND FUND objectives are defined using criteria such as: Types of bonds - corporate, government,/


1 Mutual Funds Concept and characteristics. 2 Concept What is a mutual fund? Common pool of money Joint or “mutual” ownership Similarity with shares of.

only player in the market with monopoly power Huge mobilisation of funds through assured return schemes 11 History of Mutual Funds in India Public sector mutual funds State bank of India mutual fund (1987), first non-UTI mutual fund Changes in the mindset of investors 12 History of Mutual Funds in India Private sector mutual funds Private sector funds entry in 1993 Foreign fund management companies form joint ventures with Indian promoters More competitive products/


Chapter 15 Investing in Mutual Funds Mutual Funds Raise money by selling shares to the investing public Use these pooled funds to purchase various types.

15 Investing in Mutual Funds Bond Funds Can be further categorized as:  Government funds  High-yield corporate funds  Investment-grade corporate funds  Mortgage-backed securities funds  Municipal bond funds  World income funds Chapter 15 Investing in Mutual Funds Money Market Funds Can be further categorized as: 4Government funds 4Taxable funds 4Tax-exempt funds Chapter 15 Investing in Mutual Funds Three Types of Mutual Funds Worth Noting –Sector Funds –Asset Allocation Funds –Index Funds Chapter 15/


11- 1 Chapter 5 Mutual Funds Chapter outline Investment companies and fund types Mutual fund operations Mutual fund costs and fees Short-term funds Long-term.

exclusively in either stocks or bonds are often called “blended” or “hybrid” funds. Examples include: Examples include: Balanced funds Balanced funds Asset allocation funds Asset allocation funds Convertible funds Convertible funds Income funds Income funds 5-13 Mutual Fund Objectives A mutual fund “style” box is a way of visually representing a fund’s investment focus by placing the fund into one of nine boxes: A mutual fund “style” box is a way of visually representing a/


Chapter 14 Investing in Mutual Funds Copyright © 2012 Pearson Canada Inc. 14-1.

© 2012 Pearson Canada Inc. 14-1 Chapter Objectives Describe the advantages and disadvantages of mutual funds Identify the types of mutual funds Explain how to choose among mutual funds Copyright © 2012 Pearson Canada Inc. 14-2 Chapter Objectives (cont’d) Describe quotations of mutual funds Explain the difference between ETFs and mutual funds Explain the difference between segregated funds and mutual funds Copyright © 2012 Pearson Canada Inc. 14-3 Background on Pooled Investment/


Chapter 20 The Mutual Fund Industry. Copyright ©2015 Pearson Education, Inc. All rights reserved.20-1 Chapter Preview Suppose you wanted to start savings.

©2015 Pearson Education, Inc. All rights reserved.20-2 Chapter Preview Topics include: ─ The Growth of Mutual FundsMutual Fund Structure ─ Investment Objective Classes ─ Fee Structure of Investment Funds ─ Regulation of Mutual Funds ─ Hedge Funds ─ Conflicts of Interest in the Mutual Fund Industry Copyright ©2015 Pearson Education, Inc. All rights reserved.20-3 Mutual Funds Mutual funds pool the resources of many small investors by selling them shares and using the proceeds to buy/


Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Seventeen Mutual Funds and Hedge Funds.

McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin Chapter Seventeen Mutual Funds and Hedge Funds 17-2 Mutual Funds and Hedge Funds Mutual Funds (MFs) and Hedge Funds (HFs) are financial institutions (FIs) that pool the financial resources of/ over time Little information on risk is usually provided 17-12 Types of Mutual Funds 17-13 Largest Mutual Funds in Assets Held (2010) 17-14 Mutual Funds Investor returns from MF ownership reflect three components income and dividends on portfolio /


4 4 C h a p t e r Mutual Funds second edition Fundamentals of Investments Valuation & Management Charles J. Corrado Bradford D. Jordan McGraw Hill / IrwinSlides.

Market Deposit Accounts  2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 4 - 53 Chapter Review  Long-Term Funds  Stock Funds  Taxable and Municipal Bond Funds  Stock and Bond FundsMutual Fund Objectives: Recent Developments  Mutual Fund Performance  Mutual Fund Performance Information  How Useful are Fund Performance Ratings?  2002 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw Hill / Irwin 4 - 54 Chapter Review  Closed-End/


20 th Annual Conference Canadian Investors’ Perceptions of Mutual Funds and the Mutual Fund Industry.

Manitoba/Saskatche wan 20284±6.9% Alberta302144±5.6% British Columbia300156±5.7% TOTAL18651200±2.2% 3 Confidence in Mutual Funds Meeting Financial Goals 4 Confidence in Investment Products Meeting Financial Goals Q4-8:Using a 10 point scale, where 1 /June 2006, n=1865) 29 First Step Taken to Resolve Problems with Investments Speak To Advisor’s Superiors Contact The Mutual Fund Company Contact Advisor/Banker/ Financial Planner - Insisted Move Investments To Another Advisor Sell/Take Money Out/ Cancel/Close /


1 Chapter Eight Mutual Funds. 2 Mutual Funds Overview A mutual fund is nothing more than a collection of stocks and / or bonds. Mutual funds are financial.

the NAV 10 Close End mutual funds –Asian Stocks Fund –First Capital Mutual Fund –Golden Arrow Stock Fund –Investec Mutual Fund –Pakistan Premier Fund –Pakistan Capital Mkt Fund –Prudential Stock Fund –Safeway Mutual Fund –Tri-Star Mutual Fund –Asian Stocks Fund –First Capital Mutual Fund –Golden Arrow Stock Fund –Investec Mutual Fund –Pakistan Premier Fund –Pakistan Capital Mkt Fund –Prudential Stock Fund –Safeway Mutual Fund –Tri-Star Mutual Fund 11 Investor Returns from Mutual Fund Ownership NAV - the net/


Chapter 4 MUTUAL FUNDS AND OTHER MANAGED INVESTMENTS.

mutual fund?When might it be appropriate to sell shares in a mutual fund? What are the similarities and differences between mutual funds and other managed investments?What are the similarities and differences between mutual funds and other managed investments? Mutual Fund Growth Mutual funds have become very popular investment vehicles.Mutual funds/ fundsThese results help to explain the growing popularity of index funds Mutual Fund Return and Risk Performance Risk Performance While returns are not /


Mutual Funds Chapter 16 Tools & Techniques of Investment Planning Copyright 2007, The National Underwriter Company1 What is it? A mutual fund is a company.

include: –Stocks of publicly traded companies –Corporate or municipal bonds –Real estate –Short term money market instruments Mutual Funds Chapter 16 Tools & Techniques of Investment Planning Copyright 2007, The National Underwriter Company2 When is the use /sales. –He cannot control the amount of any capital gain distribution, or when it must be reported. Mutual Funds Chapter 16 Tools & Techniques of Investment Planning Copyright 2007, The National Underwriter Company10 Tax Implications Ordinary income /


Chapter McGraw-Hill/Irwin Copyright © 2008 by The McGraw-Hill Companies, Inc. All rights reserved. 4 Mutual Funds.

–Why Pay Loads and Fees? Short-Term Funds –Money Market Mutual Funds –Money Market Deposit Accounts 4-37 Chapter Review, II. Long-Term Funds –Stock Funds –Taxable and Municipal Bond Funds –Stock and Bond FundsMutual Fund Objectives: Recent Developments Mutual Fund Performance –Mutual Fund Performance Information –How Useful are Fund Performance Ratings? Closed-End Funds, Exchange Traded Funds, and Hedge Funds –Closed-End Funds Performance Information –The Closed-End Fund Discount Mystery –Exchange Traded/


©2007, The McGraw-Hill Companies, All Rights Reserved 17-1 McGraw-Hill/Irwin Chapter Seventeen Mutual Funds.

inexpensive access to overseas stocks. ©2007, The McGraw-Hill Companies, All Rights Reserved 17-21 McGraw-Hill/Irwin Mutual Fund Costs Mutual funds charge shareholders a price or fee Two types of fees are incurred by investors –Load versus No-load Funds Load fund No-load fundFund Operating Expenses Mutual funds charge shareholders a price or fee Two types of fees are incurred by investors –Load versus No-load/


1 C HAPTER 13 Investing in Mutual Funds a.k.a. Investment Companies “Mutual Funds will bore you to wealth.” – Industry saying.

has a specific objective Over 10,000 funds to choose from Many people choose mutual funds for their retirement account investments [401(k), 403(b), IRA and Roth IRA, etc.] 3 Mutual Funds STOCKS BONDSCASH Professional Money Management Diversification Stock mutual funds Bond mutual funds Money market mutual funds Balanced mutual funds a “mutualfund 4 Why Investors Purchase Mutual Funds Professional management  Who is the fund’s manager?  Managers change often (like professional athletes!)  Look for an/


An Introduction to What are Mutual Funds?  Mutual funds are a type of investment that takes money from many investors and uses it to make investments.

provides investors with many options to help them achieve their investment objectives. Basic Mutual Fund Categories  Mutual Funds can be divided into four basic categories based upon the funds investment objective.  These categories are: 1.Money Market Mutual Funds 2.Stock Mutual Funds 3.Bond Mutual Funds 4.Balanced Mutual Funds Money Market Mutual Funds  This is the most conservative type of mutual fund.  The goal is to maintain the $1 value of its shares while providing/


1 Domestic Mutual Funds. 2 What is a Mutual Fund – its advantages and disadvantages Types of Mutual Funds and its characteristics Factors to evaluate.

Mutual Fund Types of risks associated with Mutual Funds Tax Provisions on Mutual Funds 11 Classification of mutual fund schemes on various basis 12 Type of Mutual Funds Equity Funds Money Mkt/ Liquid Funds Hybrid Funds Debt/ Income Funds Gilt FundsOther Funds Specialty Funds Tax Saving Funds Equity Index Funds Diversified Equity Funds Equity Income Dividend Yield Value Funds Growth Funds Asset Allocation Funds Monthly Income Plan Balanced Funds Sector Funds Small Cap/ Mid Cap Funds Foreign Securities Funds/


Mutual Funds and The Stock Market Game. What is a Mutual Fund? A mutual fund is a collection of stocks, bonds and other securities owned by a group of.

the stock exchange. What Types of Mutual Funds are Available? There are many types of mutual funds: Stock funds Bond funds Sector funds International Funds Money market funds Hybrid funds (also known as balanced and life cycle funds) There are many types of mutual funds: Stock funds Bond funds Sector funds International Funds Money market funds Hybrid funds (also known as balanced and life cycle funds) How Do You Make Money on a Mutual Fund? A mutual fund investor can make money in several/


1 Chapter 5 Mutual Funds Ayşe Yüce – Ryerson University Copyright © 2012 McGraw-Hill Ryerson.

-Hill Ryerson Chapter Review Long-Term Funds Stock Funds Taxable and Municipal Bond Funds Stock and Bond Funds Mutual Fund Objectives: Recent Developments Mutual Fund Performance Mutual Fund Performance Information How Useful are Fund Performance Ratings? Closed-End Funds, Exchange Traded Funds, and Hedge Funds Closed-End Funds Performance Information The Closed-End Fund Discount Mystery Exchange Traded Funds Leveraged Funds Exchange Traded Notes Hedge Funds and their Investment Styles Registered Retirement/


Mutual Funds Presented By: Dr.P.Saradhamani Professor in Management studies, SNSCE.

in time and other after sales activities; Honoring the commitments made for redemptions and repurchase; Paying dividends and other entitlements; Creating positive image about the fund; Spreading awareness about mutual funds; Creating new markets for mutual funds. LATEST TRENDS OF MUTUAL FUNDS IN INDIA The recent trends since last year clearly suggest that the average investors have lost money in equity. People have now started opting for/


CHAPTER 4 Mutual Funds and Other Investment Companies.

: –Short-term and intermediate-term funds –General funds –High-yield funds –Mortgage funds –World funds –Insured funds –Single-state municipal funds 40 Stock and Bond Funds Funds that do not invest exclusively in either stocks or bonds are often called “blended” or “hybrid” funds. Examples include: –Balanced funds –Asset allocation funds –Convertible funds –Income funds 41 U.S. Mutual Funds by Investment Classification 42 Mutual Fund Objectives: Recent Developments, I A mutual fund “style” box is a way/


Copyright © 2014 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter Seventeen Mutual Funds and Hedge Funds.

of assets The first MF was established in Boston in 1924 By 1970, 360 MFs held about $50 billion in assets Money market mutual funds (MMMFs) were introduced in 1970 Tax-exempt MMMFs were introduced in 1979 By 2013, more than 7,707 MFs held just over /market value of the assets in the MF portfolio less liabilities divided by the number of shares outstanding 17-16 McGraw-Hill/Irwin Mutual Funds MFs charge investors fees for the services they provide sales loads (front end or back end) 12b-1 fees are fees /


MUTUAL FUNDS. MUTUAL FUND Pools resources (savings of investors) Fund investors have a common financial goal Fund investors buy units of the mutual fund.

) - Growth Option10.298 Fixed Maturity Plan - Series 6 - 13 Months (Plan B) – Growth Option10.665 Yield Advantage Fund – Growth Option10.374 ICICI MUTUAL FUND Online mutual fund investment services –Initiate Purchase / Sale of Mutual Funds online –Start a Systematic Investment Plan –Switch Investments between Mutual Funds – Redeem Mutual Fund Investments online –Track Fund Portfolio online SBI MUTUAL FUND Equity schemes Debt / income schemes Liquid schemes Hybrid schemes Fixed maturity plans Exchange traded/


INDEX Mutual fund Flow Chart Myths of mutual fund History of mutual fund Types of mutual fund Organization of mutual fund SEBI Guidelines Advantage of.

. The money thus collected is then invested in capital market instruments ( shares, debentures and other securities) Anybody with an investible surplus can invest in Mutual funds. MYTHS OF MUTUAL FUND Mutual funds invest in shares. Mutual funds are prone to very high risk/ actively traded. Mutual funds are very new in the financial market. It is for short term and long term. One need a large sum to invest in/


1 Mutual Fund Operations. 2 Chapter Outline Background on mutual funds Stock mutual fund categories Bond fund categories Growth and size of mutual funds.

dividend payments They distribute capital gains resulting from the sale of securities within the fund Mutual fund share price appreciation Mutual fund classifications  Stock mutual funds, bond mutual funds, or money market mutual funds (see next slide) Background on Mutual Funds (cont’d) 10 Expenses incurred by shareholders  Mutual funds pass their expenses on to their shareholders  Expenses can be compared among mutual funds by comparing the expense ratio Equal to annual expenses per share divided by/


Mutual Funds Mr. Sullivan Building Wealth. What is a Mutual Fund?  Mutual Funds offer an alternative to investing in individual stocks.

or bonds. Mickey, Donald, and Pluto don’t have the time research investment ideas on their own. They collectively pool their money together and give it to a mutual fund investor. What is a Mutual Fund?  This investor (and his team) research various ideas and invest Mickey, Donald, and Pluto’s money. Ownership($10,000 Investment)  Mickey Invests $2,000  Mickey owns 20%  Donald/


SECURITIES AND EXCHANGE COMMISSION Public Issue of Securities: Mutual Fund Presented by Md.Anowarul Islam,Executive Director/ Md.Mahmoodul Hoque, Director.

by the size of the initial offer. This types of fund are always listed in the stock exchange for liquidity. Types of Mutual Fund (Cont’d) Equity Mutual Fund Categories: Growth Fund Capital Appreciation Fund Growth and Income Fund International and Global Fund Specialty Fund Index Fund Fund of the Fund Bond Mutual Fund Categories: Income Fund Tax Free fund High-yield Bond Fund International and Global Bond Fund Mutual Fund in Bangladesh wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz¨qvj dv/


SECURITIES AND EXCHANGE COMMISSION Public Issue of Securities: Mutual Fund Presented by Presented by Mahmudul Haque, Director Mahmudul Haque, Director.

by the size of the initial offer. This types of fund are always listed in the stock exchange for liquidity. Types of Mutual Fund (Cont’d) Equity Mutual Fund Categories: Growth Fund Capital Appreciation Fund Growth and Income Fund International and Global Fund Specialty Fund Index Fund Fund of the Fund Bond Mutual Fund Categories: Income Fund Tax Free fund High-yield Bond Fund International and Global Bond Fund Mutual Fund in Bangladesh wmwKDwiwUR I G·‡PÄ Kwgkb (wgDPz¨qvj dv/


Mutual Funds What are they and how do they work? Business 4039.

is a ‘pooled’ investment Pooled investments are managed portfolios that groups of investors invest in. Other examples include pension funds, labour sponsored venture capital corporations, segregated funds, etc. Mutual Fund What is a Mutual Fund? A mutual fund is a financial organization that accepts funds from numerous investors, pools these funds and invests them in bonds, stocks, real estate precious metals and other investments. It then issues shares or units/


1 C HAPTER 13 Investing in Mutual Funds a.k.a. Investment Companies, Investments for the Masses “Mutual Funds will bore you to wealth.” – Industry saying.

a specific objective Over 11,000 funds to choose from Many people choose mutual funds for their retirement account investments [401(k), 403(b), IRA and Roth IRA, etc.] 3 Mutual Funds STOCKS BONDSCASH Professional Money Management Diversification Stock mutual funds Bond mutual funds Money market mutual funds Balanced mutual funds a “mutualfund (investment company) 4 Why Investors Purchase Mutual Funds Professional management  Who is the fund’s manager?  Managers change often (like professional athletes/


LIC Mutual Fund Money Market Mutual Funds. LIC Mutual Fund Money Market Mutual Funds To understand money market mutual funds first we need to understand.

like instruments as specified by the Reserve Bank of India from time to time LIC Mutual Fund Money Market Mutual Fund Objective: Investing exclusively in money market instruments. Features Liquid Moderate income Comparatively less risky Proper for short term investment LIC Mutual Fund Returns Of A Money Market Mutual Fund Generally a money market mutual fund provides return Higher than saving bank account but Lower than bank fixed deposits. However/


Investments: Analysis and Behavior Chapter 16- Mutual Funds ©2008 McGraw-Hill/Irwin.

,416 20 years109,45892,74392,539 Gross return13.00% Operating expenses0.29%1.22%0.96% Net return12.71%11.78%12.04% Fund A : typical cost efficient index fund Fund B : conventional no-load stock mutual fund Fund C : low-load stock mutual fund with less than typical annual operating expenses 16-19 16-20 Sources of Investment Returns Total Return: dividend and interest income and realized/


Lecture # 23 Mutual Funds. Criticism of Managed Mutual Funds.

, 1% to 3% higher 4. Low minimum investment, some as low as $100 5. Professional management, proven expertise 6. Generally, no purchase or redemption fees, no-load funds Income Funds The objective of income mutual funds is to seek a high level of current income commensurate with each portfolios risk potential. In other words, the greater the risk, the greater the potential for generous/


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