Closed end funds' fundamental values tend to be higher than the price at which these funds trade. Why??
454085
This is generally true, but not always. If a closed-end fund invests in securities not easily purchased by individuals you will usually find a premium.\n\nBack to the question of the discount...\nThere are multiple reasons why discounts exist. One can be the "value" of the manager. If the manager is perceived as one who subtracts (rather than adds) value then a discount is natural. Another reason may have to do with liquidity: turning the portfolio into real cash - to which no discount should be applied - may incur many more costs and delays (another type of cost) than investors might think. A further reason might be lack of transparency: if the investing public is less than sure what the fund owns at a particular moment then a discount is only prudent.
824996
Besides the blue chip companies that are buy and hold candidates such as JNJ, MMM, MET, COP, HD, BAC.   I like especially the closed end funds that have good long term track records and invest in things that I am not as well able to invest in individually.  TDF is one.  It invests in Chinese companies.  IIF is another.  It invests in Indian companies.  Is there anyone who does not think that these two countries are going to grow at 2 to 3 times the rate of U S companies?
157975
I don't really know why, but my 401k displays a certain number of 'units' and a 'unit price' which doesn't correspond to the actual share value.
603801
It is reasonable for a web site to display daily highs and lows for specific securities, but the validity of such figures for a portfolio of multiple securities is questionable.\n\nA simplified approach would be just to add up all the daily highs for each security and show that as the daily high of the portfolio, and do the same for the daily lows, but since the different securities were presumably traded independently during the day, unless the software has records of every trade for every security for the full day, it is impossible to know what the value of the portfolio was at any time, and the software cannot know the true max and min values.
718239
Overall, not too bad . . . you made a profit.\n\nConsidering the timeframe you are trading, I don't understand why you are referring to a an exit at 1.1006 "which looked like an important resistance".\n\nIt looked like recent resistance was ~1.1055 and sloping upwards.\n\nI would have tried to 'trade the range' of it coming down to ~1.1055 and having hat as a 'buy on stop' or not had any exit order in place, in the hope there was significant weakening due fundamental events (of which there are many these days).
1024088
Mutual Fund\nSome or most mutual funds do not allow you to enter or exit except after the close of the trading day. \n\nIn mutual funds, unless you give the orders, it is always "in" the market. Some are limited to how many times you may trade in and out.\n\nYou have no idea whom is managing your money, and have no guarantee from past performance.\n\nA mutual fund will rarely outperform, or match the performance of the S&P or Dow because of their fees.\n\n\nETF's\nIt will take you hours of searching to find a mutual fund cheaper than investing in ETF's. An ETF has no loads or fees except for the commission, like any stock. In general, ETF's are much cheaper to trade.\n\nAn ETF will exactly match the index it is tied to, minus commission cost, which is negligible.\n\nYou can short the market with an ETF (betting on the market going down), which you cannot do with a mutual fund.\n\nThere is no "short-selling rule" like there is with stocks.\n\nI can't imagine why anyone would pay someone you don't know to keep you in the market at all times, when you can do the same thing yourself a lot cheaper, and get out when the markets get risky, like at failures at old all-time highs, like now. \n\nThe best way to do anything yourself is to learn something about it first. You'd be surprised at the thousands of books available on this one subject at your local library.\n\nBut most people spend more time deciding the color of their new car, than they do on a mutual fund advisor, for example. \n\nAre you really wanting to do this yourself, or are you asking about someone who is an expert who can do it for you?\n\nIf you invest in the stock market right now, or just buy into all the ETF's you can afford, it's a crap shoot, like rolling the dice, and the odds are probably not in your favor, whether you have an expert fund manager or not, because mutual funds are always "in" the market.\n\nThey say "Buy and Hold" for the long term is better, but that depends on when you get in, and what your definiton of "long term" is. The phrase "Buy low and sell high" infers that you buy after a decline; decidedly not the case here.\n\nThe Dow has approached all-time highs last seen in Jan 2000 and failed, so if your long-term definition is more than seven years, then you won't mind waiting another seven years for a profit.\n\nIn my opinion, the name of the game is capital preservation. When the risks are high, like right now, you get out of the stock and bond markets and park your cash in a interest bearing money market fund or CD or Treasury Bill.\n\nThis is simply not a good entry point for investors. Be patient, wait a few months, and you'll be able to buy much more stock a lot cheaper, the risks will be lower (even though they will seem higher), and your chance of success greater.\n\nIf you wish to research the “Buy and Hold Strategy” further, or perhaps trade yourself, I recommend two book titles. One is called "Which Is Better, Buy-and-Hold or Market Timing?" The other is "Do You Have What It Takes to Be a Market Timer?" They will give you plenty to think about.
205298
They usually trade on the exchange of the underlying security.  Most have a small market so prices can be spotty.
664117
Mutual funds are actively mangaged...ie, the manager takes everyone's money , pools it, and buys and sells whatever stocks seem like decent buys.\n\nETFs tend to be pretty static, ie, not alot of change in the makeup of them.\n\nETF's prices change throughout the day as the underlying stocks change price. Theoretically, you could buy in the morning and sell in the afternoon and have 2 different prices. Mutual funds TEND to get priced once a day, after the closing bell.\n\nWith much less turnover, you won't get capital gains distributions from ETFs like you would mutual funds.\n\nETFs trade like stocks...but they are "stocks" made up of other stocks.\n\nETFs are really popular now and getting more popular. Expenses TEND to be lower...if you can find some you like...that might be the route to go.
1120377
It refers to a closed-end fund. When a fund trades at a price lower than its per-share value, it is said to be trading at a discount to NAV (net asset value). A closed-end fund whose share price is falling in relation to its NAV is said to be trading at a "widening discount."
39396
Making money for these two doesn't apply in the same sense that it does for the rest of us.\n\nThe both have very large trusts which generate very large amounts.
158083
Clarification on bond markets in rising rate environments. The longer the maturity (or duration in the case of bond funds) the more the value of a bond holding will be eroded by a rise in interest rates. Rotate bond holdings towards shorter maturities.
986833
Fees are excepted in exchange for managing the fund. The thinking that you receive a greater rate of return with someone  carefully managign your investuaory.
1138807
It becomes physically worth more because of this:\n(This is a really primitive example) Say stock XYZ is woth 1.00 dollars. Joe owns one share of XYZ that he wishes to sell. Paul heard that XYZ is coming out with a really cool new product, and he wants to invest in the company by buying one share of it. This creates demand for the stock, so price will increase. Paul agrees to buy his share from Joe for 1.01 dollars. He pays a premium of one cent because he created demand for it, and upon the transaction, that stock is up .01 cents that day.\nHope that helps...
593016
As I understand, it is shifting asset allocations.\nMostly seems to be fee based turnover of funds from here to there!
221216
I don't know who told you that, but typically, what you could buy last year cost less than what you would pay for it today. This means that last years dollars were actually worth more. That's what inflation is all about.
359336
Mutual fund schemes may be classified on the basis of its structure and its investment objective. \n\nBy Structure: \n\nOpen-ended Funds An open-end fund is one that is available for subscription all through the year. These do not have a fixed maturity. Investors can conveniently buy and sell units at Net Asset Value ("NAV") related prices. The key feature of open-end schemes is liquidity.\n\nClosed-ended Funds A closed-end fund has a stipulated maturity period which generally ranging from 3 to 15 years. The fund is open for subscription only during a specified period. Investors can invest in the scheme at the time of the initial public issue and thereafter they can buy or sell the units of the scheme on the stock exchanges where they are listed. In order to provide an exit route to the investors, some close-ended funds give an option of selling back the units to the Mutual Fund through periodic repurchase at NAV related prices. SEBI Regulations stipulate that at least one of the two exit routes is provided to the investor.\n\nInterval Funds Interval funds combine the features of open-ended and close-ended schemes. They are open for sale or redemption during pre-determined intervals at NAV related prices.\n\nBy Investment Objective:\n\nGrowth Funds The aim of growth funds is to provide capital appreciation over the medium to long- term. Such schemes normally invest a majority of their corpus in equities. It has been proven that returns from stocks, have outperformed most other kind of investments held over the long term. Growth schemes are ideal for investors having a long-term outlook seeking growth over a period of time.\n\nIncome Funds The aim of income funds is to provide regular and steady income to investors. Such schemes generally invest in fixed income securities such as bonds, corporate debentures and Government securities. Income Funds are ideal for capital stability and regular income.\n\nBalanced Funds The aim of balanced funds is to provide both growth and regular income. Such schemes periodically distribute a part of their earning and invest both in equities and fixed income securities in the proportion indicated in their offer documents. In a rising stock market, the NAV of these schemes may not normally keep pace, or fall equally when the market falls. These are ideal for investors looking for a combination of income and moderate growth.\n\nMoney Market Funds The aim of money market funds is to provide easy liquidity, preservation of capital and moderate income. These schemes generally invest in safer short-term instruments such as treasury bills, certificates of deposit, commercial paper and inter-bank call money. Returns on these schemes may fluctuate depending upon the interest rates prevailing in the market. These are ideal for Corporate and individual investors as a means to park their surplus funds for short periods.\n\nLoad Funds A Load Fund is one that charges a commission for entry or exit. That is, each time you buy or sell units in the fund, a commission will be payable. Typically entry and exit loads range from 1% to 2%. It could be worth paying the load, if the fund has a good performance history.\n\nNo-Load Funds A No-Load Fund is one that does not charge a commission for entry or exit. That is, no commission is payable on purchase or sale of units in the fund. The advantage of a no load fund is that the entire corpus is put to work.\n\nOther Schemes: \n\nTax Saving Schemes These schemes offer tax rebates to the investors under specific provisions of the Indian Income Tax laws as the Government offers tax incentives for investment in specified avenues. Investments made in Equity Linked Savings Schemes (ELSS) and Pension Schemes are allowed as deduction u/s 88 of the Income Tax Act, 1961. The Act also provides opportunities to investors to save capital gains u/s 54EA and 54EB by investing in Mutual Funds, provided the capital asset has been sold prior to April 1, 2000 and the amount is in
729205
Its because the market is constantly changing and thats what day traders try to capitalize on. Stocks make money through either capital appreciation (raises in value) or dividends (money paid out from company). Day traders usually do trades that run from a couple of thousand dollars to much more. They make their money by using the large amount of stock purchased with those thousands and then later sell them after capital appreciation. Meaning the value of the stocks went up and they sold them for more and since they bought so much stock those few cents turned into much more than even thousands in some cases. The reason its so risky is because stocks fluctuate meaning they also go down although historically the stock market continually rises. Hope that gave you an idea.