Mutual funds can play an important role in the growth of the economy of a country. Mutual funds are a desired investment destination for each individual/ organization if the fund houses offer not only the expertise in the management of the resources, but also many other services. A unit trust is a medium of communication for investing in shares and bonds. It is not an alternative choice for an investment in stocks and bound; but rather pools the money of different investors and invests it in stocks, borders, money mutual fund pools resources of thousands of investors and diversifies its investments in many different companies, such as shares, bonds and other securities spending extremely relative safety and efficiency. Mutual funds have become one of the most effective and attractive opportunities for the average person to invest their money. Mutual fund is a process or system or structure of pooling the saving of large number of investors with a purpose or objective of effective yield and appreciation in their value Mutual Funds managers have a range of investment products but still in our country is not to classify this sector or analyzes various custom products, the investor should therefore.
Not too many years ago, mutual funds were just wide investment instruments developed to simplify investing in individual securities. Mutual funds also a higher degree of safety through broad diversification and the type of top notch professional management that is usually outside the range of the small shareholder.
Today, however, mutual funds are specialized and this time almost unlimited variety. The types of mutual fund portfolios available run the range of conservative to aggressive, from stocks to bonds, of domestic to in...
... middle of paper ...
... well as the durability of the owners of the company. The management of the mutual funds charges the management fee for this purpose. The growth of the investment funds that we have examined here is based on the determinants that have an impact on the growth of the investment funds and is dependent on the negative and the positive effects of these determinants.
Today, however, mutual funds are specialized and this time almost unlimited variety. The types of mutual fund portfolios available run the range of conservative to aggressive, from stocks to bonds, of domestic to international portfolios, of the taxable tax-free, and virtually no risk of money market funds and high risk options (Jacobs, 2001).
Mutual funds are one of the best investments ever made because they are very cost effective and very easy to invest in (a not to find out what files or bonds to buy).
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- Mutual Funds, Bill Miller, and Value Trust Value Trust, an $11.2 billion mutual fund managed by Bill Miller III, and one of a family of funds managed by Legg Mason., a leading Global Asset Management Firm headquartered in Baltimore, Maryland has achieved uncanny success. The Fund invests primarily in large-cap equity securities, is benchmarked against the S&P 500, and as of 2005, has outperformed its benchmark for a record 14 consecutive years. This amazing streak has brought much attention to this highly rated fund and what exactly is behind its excellent success and management.... [tags: Business Finance Investing]
709 words (2 pages)
- Stocks- • Stocks are appealing to some individuals because they rise in price and to others it is a level of current income. Stocks are highly liquid. Investors are also able to invest in foreign markets. • Common Stock is a method of equity and is open to the public. Common Stock is the most popular. Each share of stock represents a portion of the proprietorship position in a business. Gives individuals the ability to take part in the return of the firm.Dividends Yields- is a way to measure common stock dividends as a percentage.... [tags: financial and economic concepts]
537 words (1.5 pages)
- Chapter 2 Overview of the Mutual Funds in Pakistan 2.1 History of Mutual Fund There are main two types of mutual funds are available open end and closed end funds for the Pakistani investors. Close End mutual funds are traded in stock exchange, directly every investor can buy or sell these funds in the stock market. Prices of these funds are determined on the basis of demand and supply of the shares rather than net assets value in case of closed end mutual funds. In 1962, Government of the Pakistan established open end mutual fund with the name of National Investment Unit Trust (NITL) commonly known as NIT.... [tags: Economics]
2286 words (6.5 pages)
- Focusing Capital on the Long Term The article discusses how today’s economy has been trending towards short term gains in finances and how this is negatively impacting long term success for companies and the economy. The idea called short-termism is causing economic growth to be stunted, return on investments for savers are being minimized and value building for companies is proving to be difficult. The way around this epidemic is long term financial saving and building. The article discusses the biggest reason behind this issue is the financial market putting large amounts of pressure on publically traded companies to grow drastically in a short time frame.... [tags: Finance, Investment, Goal, Economics]
1014 words (2.9 pages)
- Mutual Fund Cash Flows and Stock Market Performance* During the decade of the 1990’s through the year 2001 there were some major shifts in the deployment of investment assets. Based on a variety of measures, mutual funds grew dramatically as vehicles for investing in portfolios of stock. Specifically net cash flows into equity funds grew from $13 billion in 1990 to $310 billion in the year 2000.1 During that same period the number of equity funds rose from 1,100 to 4,395, while the number of accounts in those funds increased from 22 million to 162 million.... [tags: Economics Stock Investment Cash Analysis]
1802 words (5.1 pages)
- Starting from the problems of failure to pay housing loans (subprime mortgage defaults) in the United States (U.S.), then bubbled damaging crisis banking system not only in America but expanded to Europe and to Asia. Successive causes a domino effect of the solvency and liquidity of financial institutions in these countries, which among others led to the bankruptcy of hundreds of banks, securities firms, mutual funds, pension funds and insurance. The crisis then spread to parts of Asia, especially countries such as Japan, Korea, China, Singapore, Hong Kong, Malaysia, Thailand, including Indonesia, which happens to have long had precious letters these companies.... [tags: Economics]
829 words (2.4 pages)
- • Individual insurance business having enjoyed growth in previous years is expected to have key position in future also. Therefore, there is an imperative need to develop a better product mix for this sector. To improve the business, LIC should emphasis on the international market also. • To increase the life insurance fund LIC should cut the management expenses. • To fulfill the responsibility towards the society LIC should invest in infrastructure and social security. • Owing to intense competition with private sector, LIC should adopt aggressive marketing strategies.... [tags: Investment, Mutual fund, Insurance, Marketing]
752 words (2.1 pages)
- Individual insurance business having enjoyed growth in previous years is expected to have key position in future also. Therefore, there is an imperative need to develop a better product mix for this sector. To improve the business, LIC should emphasis on the international market also. To increase the life insurance fund LIC should cut the management expenses. To fulfill the responsibility towards the society LIC should invest in infrastructure and social security as per IRDA guidelines. Owing to intense competition with private sector, LIC should adopt aggressive marketing strategies.... [tags: Investment, Mutual fund, Marketing, Insurance]
774 words (2.2 pages)
- Types Of Mutual Funds Learn about the different Types of Mutual Funds in this mutual fund tutorial. Which mutual fund is right for you. Asset Allocation Asset allocation refers to the division of your portfolio to different asset classes such as money-market securities, bonds, stocks and their appropriate subcategories. An asset allocation fund follows this principle by holding several asset categories. One of many Types Of Mutual Funds. Balanced Funds These funds invest in a combination of bonds and stocks of various sorts depending on their stated objectives.... [tags: Investment, Bond, Mutual fund, Stock market]
1510 words (4.3 pages)
- 1. Intro 2. Mutual Funds a. Definition – pool of money, Open-ended investment company b. History / Purpose c. Types: Growth, income, small-, medium-, and large-cap funds, money market, specific sector, industry, or type of security (201), international funds, and Index (202, use as Segway) i. “After the initial success of the index fund, a variation was created: exchange-traded funds, commonly referred to as ETFs. As the name implies, and exchange-traded fund is an investment company whose shares are traded on an exchange” (203).... [tags: history, purpose, income, funds, money]
1432 words (4.1 pages)