How & when does a mutual fund gives returns? Explain with example?
80362
There are actuall 3 ways for a mutual fund to pay a return. \n1. Capital Gains would be paid when a mutual fund manager decides to close out a position in a specific stock that fund owes. Now if the stock is sold for a premium (above cost of what it was bought for) they will get money back to distribute to the shareholders. Ex. Manger bought 100shares of Coke for 23.00 sold for 25.00 has capital gains of 200.00 \n2. Dividends are the second way. When a stock that the fund owes pays a divdend it can be paid back to the shareholders of the fund. Ex. coke declares a 5 cent dividend per share. For every share the fund owns they will receive 5 cents. Now if the fund owns bonds rather than stocks whenver they receive interest payments from that bond they will pay a dividend.\n3 Is to sell your mutual funds. If you sell higher than what you bought for you gain money. Simple enough.\n\nAs far as when do they acutally pay out returns like in 1 and 2. Not exactly possible to say. Since the return on these investments are guaranteed you aren't always going to get a return. Say you do a mutual fund company is required under the investment company act of 1940 to pay out income atleast annually. Usually at the end of the year. They will however usually pay dividends quarterly if there are any and capital gains are usually annually to semi-annually.
1162116
Your question is confusing people, but I think I know what you mean.\n\nWhen you hear them report "profit taking" in the news it has nothing to do with the mutual fund or the underlying companies making a profit.  It has to do with speculators holding stocks that have appreciated substantially and selling those investments to secure the gain.  By dumping shares into the market and by them no longer adding demand buy buying, they add supply and reduce demand causing the entire market to fall in price.  Since mutual funds are usually broadly diversified holders of a sizeable segment of the market, the mutual fund's price falls with everyone elses.\n\nThe profit was taken by someone else, not you and by the time you found out about it, it was gone.\n\nDON'T WORRY ABOUT IT.  Mutual fund investors should ignore price fluctuations.
966502
There are several types of Mutual Funds:\n\nSector-based: These invest only in a particular sector Eg. IT, Telecom, Petrochemical, etc\n\nIndex-based: These invest only in the Index i.e. BSE Sensex, NSE Sensex. Their valuation is based on the value of the Index and not directly on any particular share.\n\nGrowth-fund:They generally invest in equity across sectors and try to maximise their gain wherever possible.\n\nMid-cap/ Small-cap Fund: They invest only in mid-cap or small-cap companies. Though the returns can be very high, so are the risks.\n\nBalance Fund: They invest both in debt and equity so as to provide good growth through equity and safety but low returns through debt.
821290
I assume you mean mutual funds.  \n\nThere are a lot of types.  They all have the same basic function--to pool individual investors' moneys and invest those moneys for the individuals hopefully with a decent return.\n\n1 index funds.  These are funds that attempt to match the returns of particular indexes. They are unmanaged and have very low expenses.  They are relatively new.  There are maybe 200 to 400 different index funds indexing everything one can imagine from the price of gold to the S&P 500. Many but not all are traded like stocks.\n\n2. managed equity funds.  These invest in stocks.  There are many different types of these.  Some invest in growth stocks, some in small cap stocks, some in value stocks, some in foreign stocks and everything else for that matter.  Many of these can be purchased directly from mutual fund companies.  They come in three different types. 1. ones with front end loads normally 7.75%. 2. ones with no front end loads. 3. closed end funds that are traded like stocks.  \n\n3.  managed bond funds.  These invest in bonds.  Some in taxable bonds and some in tax free bonds. \n\n4. Unit trusts.  These buy a pool of bonds and do not manage them.  They have very low fees.
535179
mutual funds ..as the name suggests is pool of funds contributed by large no. of individuals which is invested by financial experts in different fields to give a good retuen on the investment to the contributers. A company, trust, financial instituion as the case may be in a country invites funds from individuals and hires experts to invets the same into equity, debt, commodities and even real estate to generate profitable returns on them and investors thus gain from their investment as the profits made on investments are distributed among different contibuters to the fund in the ratio of their contribution. thus mutual funds help small investors to gain advantages of diversified portfolio and gain from specialised knowledge of experts who invest the money. to know more email me at siderminator@yahoo.co.in
1091243
There is a huge difference.\n\nA mutual fund is an investment portfolio where lots of people pool their money in order to buy a well diversified portfolio.  Some people may put in a little while others may put in a lot.  Each owns a piece tht is proportional to the amount they put in.\n\nA trust fund is money governed by a legal contract where a really rich person puts aside part of his money for someone -- usually an underage child.  The trustee (usually a law firm) then manages the money until the person comes of age.  They often make decisions about what can be taken out of the fund before the person gets control.
718876
Net Asset value. In other words, the total value of all the holdings of the mutual fund (stock, bonds, cash, etc) divided by the number of shares.\n\nThat is the cost one share of the fund.
158989
Most of the mutual funds from big names firms are overpriced and underperform. Check out the performance and fees from the fund you bought with its peers. You could use the fund comparison tool at Vanguard.com or one of many discount brokers. I bet you find that Smith Barney takes a big chunk of your investment as fees and commissions and underperforms as well.\n\nread bobbrinker.com website for more unbiased views on investing and no load mutual funds. Also Growth Fund Research Inc. has an incredible recent track record in mutual fund advisory. NO LOADS>
199313
Talk to your bank about investing in a mutual fund. Ask for high growth and moderate risk. The reason I suggest this is because it is obvious you know little or nothing of investing, this is what I would buy. You wont see the kind of returns on any other unmanaged investment.\n\nBest Wishes
49036
If you don't want to invest in individual stocks, then you are usually better of with an index fund, or ETF, than a mutual fund. The majority of mutual funds underperform index funds. (it's quite ironic that picking stocks at random would provide better results than most "professionals".)
583562
The net asset value (NAV) of a mutual fund is simply its assets minus its liabilities. In other words, NAV equals the fund's worth. If a fund has assets of $50 million and liabilities of $10 million, it would have a NAV of $40 million. \n\nThis number is important to investors, because it is from NAV that the price per unit of a fund is calculated. By dividing the NAV of a fund by the number of outstanding units, you are left with the price per unit. In our example, if the fund had 4,000,000 shares outstanding, the price-per-share value would be $40 million divided by 4,000,000, which equals $10. \n\nThe NAVs of funds are constantly changing and, as such, so are their price per shares. Funds usually wait until the end of each trading day to recalculate their NAV and individual share prices. \n\nWe should note that simply analyzing the NAV is not a good measure of the fund's growth. Funds are constantly paying out distributions of both capital gains and dividends, which reduce the NAV of the fund and do not reflect any appreciation in the price per unit. Say a fund's price per unit increased from $10 to $15, but the fund also distributed $5 per share to all unit holders. The fund hasn't simply appreciated by 50% ($10*1.5 = $15), as the per-unit cost would suggest; it has actually appreciated 100% ($10*2 = $20). So do not mistake a fund's per-share price based on NAV for the actual earnings of the fund.
923418
What do you want your broker to do?  Is there a % annual return you're expecting, and upon what information do you base your expectations?  I don't use a broker, because I find that they make about 2 - 3% more than a good mutual fund, but then take 1% of my assets away every year.  I'd rather buy MSTR (microstrategy) at $108 last month and sell it at $128 a month later (you can check the stats ) - that's real money...
469794
The practical side of dividend adjustment is that charts on the Internet don't adjust for dividends and capital gains reinvestment. For many mutual funds, the distributions can account for very big chunk of the return. \n\nHence, you cannot do meaningful analysis of dividend-paying stocks and mutual funds unless you get adjusted data. Best source (maybe only source) for daily, distribution-adjusted data is http://www.fasttrack.net
270161
First off did you pay taxes on the Dividends that you received from the Mutual Fund or did you pay taxes on both the earnings of the mutual fund and the Dividends.  \n\nIf you haven't paid taxes on the earnings every year then you have to pay taxes on the entire amount of earnings. (Your current value of the fundsdifferencee cost basis) In this case your cost basis is simply the initial investment.  \n\nIf you have paid taxes on your earnings.  Then the cost basis is the amount your reported last year.  For example if you reported that the value of your fund went up from $100 to $150 in 2004 and you paid the taxes on that $50 earning.  Then for 2005 your cost basis will be $150 and you would pay the taxes on the diffrence of that $150 and your current value.\n\nWithout knowing any more specific information about your situation I don't believe I can give better advice then that.\n\nBelow are some websites from the IRS on accounting methods and selling of stocks/mutual funds.\n\nMonteverde2\nUS Army Tax Preparer
470243
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. \n\nMutual 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). \n\nBy pooling money together in a mutual fund, investors can purchase stocks or bonds with much lower trading costs than if they tried to do it on their own. But the biggest advantage to mutual funds is diversification.
40519
Mutual funds are a "basket of stocks" that allow you to have an ownership in a more diversified way. Check out ETF's a newer wrinkle on fund investing.\n\nread education links at bobbrinker.com
436201
A Mutual Fund is a collective fund pooled by an enterprise from the investors having mutual interest. The fund collections shall be invested by the Fund manager in the stocks traded on the exchange. The type & mode of investment made by the Fund Manager shall be made specific to the investors at the time of collecting the amount from them. There are lot of mutual funds availble in the market like Morgan Stanley ... etc.,. The mutual funds are governed by laws of the respective country.