* Your assessment is very important for improving the workof artificial intelligence, which forms the content of this project
Download Mutual Funds - McDonaldMath
Capital gains tax in Australia wikipedia , lookup
Private equity in the 2000s wikipedia , lookup
International investment agreement wikipedia , lookup
Systemic risk wikipedia , lookup
Early history of private equity wikipedia , lookup
Corporate venture capital wikipedia , lookup
Private equity wikipedia , lookup
Special-purpose acquisition company wikipedia , lookup
Stock trader wikipedia , lookup
Rate of return wikipedia , lookup
Environmental, social and corporate governance wikipedia , lookup
History of investment banking in the United States wikipedia , lookup
Washington Mutual wikipedia , lookup
Private equity secondary market wikipedia , lookup
Investment banking wikipedia , lookup
Interbank lending market wikipedia , lookup
Fund governance wikipedia , lookup
Money market fund wikipedia , lookup
Socially responsible investing wikipedia , lookup
Private money investing wikipedia , lookup
Mutual Funds Mutual fund – a business that accepts deposits from many people to invest in various ways -each deposit is used to pay for a portion of the stocks or bonds the fund purchases -professionals employed by the fund make transaction decisions Mutual Funds (cont.) -generally require a minimum of $1000 investment -your return is a share of the dividends and/or capital gains/losses -Purchase through brokerage such as Merrill Lynch, TD Waterhouse Costs of Mutual Funds -All charge annual maintenance fees (0.2 – 3% of the value of your investment) -Some charge sales fees (5-6% to pay for marketing of fund) – paid when buying shares OR when selling shares Why invest in mutual funds? 1. Limited amount of investment can still be diversified. 2. Many are managed to delay owners’ taxes until owner redeems their investment. 3. You do not have to follow the market to be informed about transaction decisions. How to choose mutual funds 1. Choose the investment objective (low, med, high risk) that fits your tolerance. 2. Consider whether you want returns now (dividends) or later (capital gains). Risk/Return Pyramid for Mutual Funds Great Risk and Potential Return Growth Funds Growth and Blue Chip Funds Blue Chip Funds Tax- Free Funds Lower Risk and Potential Return How to research mutual funds 1. Financial publications – annual eval./compare -Fortune, Forbes 2. Internet 3. Request info from company -prospectus – publication describing how fund is operated, objectives, and fees