What are MUTUAL FUNDS????



i want to know what exactly is a mutual fund.can a student of degree 1st year without having a pan card invest in a mutual fund.what is the least amount that we can invest?????????/

What are MUTUAL FUNDS????
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7 Replies to “What are MUTUAL FUNDS????”

  1. WITH OUT PAN CARD U INVEST RS 49,000 INR IN MUTUAL FUND.
    THE SCHEME CALLED SIP(IN THIS METHOD U PAY 500 RS ALSO…)
    SIP IS MONTHLY YOU PAY FOR MINIMUM 12 MONTHS OR24 OR 36 OR 48.

    IN ONE TIME MEANS YOU PAY MINIMUM 2000 AND MAXIMUMHOWMUCHU HAVE.

    MY SUGGESTION IS AT PRESENT HDFC MUTUAL FUNDS IS GOOD..
    TRY IT…

    A mutual fund is a pool of money that is professionally managed for the benefit of all shareholders. As an investor in a mutual fund, you own a portion of the fund, sharing in any increases or decreases in the value of the fund. A mutual fund may focus on stocks, bonds, cash, or a combination of these asset classes.


  2. A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.[1] In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund’s underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding.

    Legally known as an “open-end company” under the Investment Company Act of 1940 (the primary regulatory statute governing investment companies), a mutual fund is one of three basic types of investment companies available in the United States.[2] Outside of the United States (with the exception of Canada, which follows the U.S. model), mutual fund may be used as a generic term for various types of collective investment vehicle. In the United Kingdom and western Europe (including offshore jurisdictions), other forms of collective investment vehicle are prevalent, including unit trusts, open-ended investment companies (OEICs), SICAVs and unitized insurance funds. In Australia and New Zealand the term “mutual fund” is generally not used; the name “managed fund” is used instead.

    http://en.wikipedia.org/wiki/Mutual_fund



  3. A mutual fund is a pool of money that is professionally managed for the benefit of all shareholders. As an investor in a mutual fund, you own a portion of the fund, sharing in any increases or decreases in the value of the fund. A mutual fund may focus on stocks, bonds, cash, or a combination of these asset classes.

    You can buy shares a few different ways, depending on the rules of the particular fund. Funds are often described as either being “no-load” or “load” funds, depending on whether or not they charge a sales commission.

    No-load funds: Many funds are no-load funds that charge no (or a very low) sales fee or commission. Financial companies typically sell no-load funds directly to investors in places like newspapers and magazines. In this case, you complete all the paperwork yourself.
    Load funds: These funds charge a sales fee or commission for purchases. Some funds charge the fee when you buy shares; others charge when you sell them. Brokerage firms and banks often sell load funds, and will help process any paperwork.

    The minimum amount you can invest is also in each fund rules.




  4. These funds are a type of security that can be traded on the stock market, allowing shareholders to buy and sell shares in the funds. The revenue generated by purchase of shares is used by mutual fund manager to buy more shares of specific stocks, bonds, and other market securities and money market instruments.

    Since the prices of the stocks, bonds, and other securities held by the mutual fund vary, the value of the fund changes. The average value of every share of the mutual fund is fixed daily based on the total value of the underlying securities held by the fund.

    This involves the shareholders of a mutual fund directly with their investment as against those who just buy individual securities and observe as the prices fluctuate.
    http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html





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