Mutual_fund_2.2_US09.key

Mutual_fund_2.2_US09.key - Sharing the risk with others:...

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Sharing the risk with others: Mutual Funds I Clicker Question Which type of mutual fund would have the lowest “internal” fees - ie, 12(b)1 fees and money manager fees? A. International B. Growth C. Index D. Income And WHY? No Load, Index Mutual Funds Money manager 12(b)1 Commission to sales person = Load “I think that people are generally trying to simplify their lives……. ……They (advisors) try to sell you on the idea that a simple investment approach is only for dummies…” “Low cost and simplicity, trumps everything.” Jane Bryant Quinn Family of funds • An investment management company that offers a variety of different funds each with their own investment objective. Fidelity, Vanguard, American Funds, T Rowe Price American Funds or Vanguard? • Actively managed funds. • Fundamental Invest • (ANCFX) • ($250. minimum ) • .61 expense ratio • 5.25% Load • NAV = $32.38 • Indexed funds/low expenses • Mid Cap Index • (VIMSX) • ($3,000 minimum) • .22 expense ratio • NAV = $13.25
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How is a mutual fund priced? NAV =
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This note was uploaded on 10/17/2011 for the course ECON 101 taught by Professor Thompson during the Spring '11 term at Michigan State University.

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Mutual_fund_2.2_US09.key - Sharing the risk with others:...

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