Chapter 16 - 16 Mutual Funds Diversification and money...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
© Chris Robinson and Captus Press Inc., 2006 © Chris Robinson and Captus Press Inc., 2006 16 Mutual Funds 16 Mutual Funds Diversification and money management for the smaller investor
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
© Chris Robinson and Captus Press Inc., 2006 Learning Objectives Learning Objectives Describe types of mutual funds Discuss advantages and disadvantages Compare fees Learn how to read mutual fund reports Assess risk Describe how to buy mutual funds
Background image of page 2
© Chris Robinson and Captus Press Inc., 2006 What is a Mutual Fund? What is a Mutual Fund? A pool of funds contributed by many different investors. Each investor owns a share proportionate to the funds s/he put in. A mutual fund company administers the money. Administrator invests in a wide variety of income- earning assets. Investors share in income and capital gains.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
© Chris Robinson and Captus Press Inc., 2006 Types of Funds -- by Organization Types of Funds -- by Organization Open end : company continuously sells new units/shares and invests the new cash. new investors buy in at market value (net asset value per share), which is updated daily. investors have right of redemption at market value. Closed end: no new money accepted. often trade on stock market like any other share.
Background image of page 4
Types of Funds -- By Investment Types of Funds -- By Investment In increasing order of risk, approximately: T-bill, money market bond or income, mortgage dividend, balanced (bonds + equity) real estate equity: index, actively-managed equity, sectors -- high- tech, gold, etc. Ethical funds: screen investments on ethical
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 17

Chapter 16 - 16 Mutual Funds Diversification and money...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online