Class 13 - Sharing the Risk with Others Mutual Funds Family...

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- Family of Funds o 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? o Actively managed funds o Fundamental investment o (ANCFX) o ($250 minimum) o .69 expense ration o 5.25% load o NAV = $34.17 o Indexed funds/ low expenses o Mid Cap Index o (VISMX) o ($3,000 minimum) o .18 expense ratio o NAV = $18.33 - How is a mutual fund priced? o NAV = Net Asset Value (Value/ # of shares) NOT o Supply and Demand - What is capital gain? o A capital gain occurs when an investment is SOLD for more than its purchase price o Capital gains is not made until time of sale - How do you make money from a mutual fund? o Annually Dividends Plus Capital gains o At time of sale Capital gain - Information on mutual funds o General Information Smart Money magazine and others Search engine info o Rating firms
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This note was uploaded on 12/01/2011 for the course HDFS 238 taught by Professor Boyce during the Fall '10 term at Michigan State University.

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Class 13 - Sharing the Risk with Others Mutual Funds Family...

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