What You Need to Know About Investing in Mutual Funds

A mutual fund is a collective investment, pooling money from thousands of investors to create a portfolio consisting of bonds, stocks, and other securities. This is done in keeping with an agreement enforced by the company offering mutual funds. Each mutual fund investor gets his or her share of returns from the total funds.

Mutual funds allow investors to make investments ranging from a few hundred to thousands of dollars. They also help investors create a diversified portfolio at low costs when compared to purchasing individual bonds and stocks. Also, mutual funds save you the trouble of tracking multiple investments as this is taken care of by the fund manager.

Stock funds

Stock funds are mutual funds that invest in stocks. There are different types of stock funds, such as index funds, growth funds, value funds and hedge funds. Growth funds invest in stocks of fast growing companies while index funds buy and sell securities that reflect a particular market index. [Read more…]

Why ETFs are Better Investments Over Mutual Funds for the Novice Investor

ETFs are a good option for investors who want to diversify their portfolio but don’t really know how and what to invest in. Although mutual funds are a good diversification choice, ETFs bring some unique advantages to the table, which make them doubly attractive. [Read more…]

How to Invest in a Mutual Fund

Investing in mutual funds is a great way to earn higher returns on your funds. Understanding how the mutual fund market works and the key success factors for such investments can make sure that you keep your money safe. [Read more…]

New to Investing Do Trial Runs Using a Mock Portfolio

Various sites such as Yahoo! Finance and AOL allow users to build a mock portfolio online. In a mock portfolio, the user makes imaginary investments in various stocks. These site tools map out the losses and gains on the stock investment of the user, which can later be used for analysis of the investment strategy by the user. It gives an idea of how the investment would have done in the real stock market. [Read more…]

Supreme Court Sends Mutual Fund Fees Case Back to Lower Court

The Jones v. Harris Associates case, which was in the news when a district court supported the Chicago-based Harris Associates by finding the mutual fund fees charged reasonable, has come into the spotlight once again as the Supreme Court has sent the case back to the lower court. [Read more…]

Investment Alternatives to Mutual Funds

Those days when investors could blindly stack their cash in mutual funds are behind us. The returns from mutual fund investments have gone down and various other investment options have emerged that look much better. Many retail investors seem to have ignored this fact and they are still not moving their cash from mutual funds to other areas. [Read more…]

SEC Staff Reviewing Derivatives Trading by Funds

The Securities and Exchange Commission has said that its staff is reviewing whether there is a need to revamp derivatives trading rules for mutual funds and exchange traded funds.

The SEC said that it was the right time to have a look at the rules that govern derivatives trading by funds. It wants to determine if any changes are needed to provide better protection to investors. There has been increasing concern recently that derivatives trading has become too sophisticated to be governed by rules that were set many years ago. [Read more…]

Choosing Mutual Funds

Mutual funds, stock market and shares are still a mystery to many of us. Where and when to invest their money, is a big question in front of many of the people who are trading daily in the share market. What is the best option? There are many answers like stocks, bonds, T-bills, real estate property shares and much more. It seems that for every individual who gets wealthy investing in one speck, a hundred might loose themselves a fortune. This is the age of diversification and the industry is looking forward to asset allocation each new day. Due to this, the business of mutual funds seems to have hit an all time high. [Read more…]

10 Tips For Investing In Mutual Funds

Mutual funds have been a very popular investment used to save money and create wealth for quite some time. The problem is that a lot of people don’t even understand what exactly they are, or how they can benefit investors. Thus, a few things need to be clarified so that everyone can understand mutual funds a bit more. So get comfortable and read through these 10 essential pieces of information when it comes to mutual funds. [Read more…]