Your SlideShare is downloading. ×
Mutual Funds
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×

Introducing the official SlideShare app

Stunning, full-screen experience for iPhone and Android

Text the download link to your phone

Standard text messaging rates apply

Mutual Funds

292
views

Published on

Published in: Economy & Finance, Business

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
292
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Mutual Funds and Investment Companies
    • Services of Investment Companies
    • Types of Investment Companies
    • Types of Mutual Funds
    • Cost of Mutual funds
    • Return of Mutual Funds
    • Exchange Traded Funds
  • 2. Services of Investment Companies
    • Administration & record keeping
    • Diversification & divisibility
    • Professional management
    • Reduced transaction costs
  • 3. Net Asset Value
    • Used as a basis for valuation of investment company shares
      • Selling new shares
      • Redeeming existing shares
    • NAV=
    • Market Value of Assets - Liabilities
    • Shares Outstanding
  • 4. Types of Investment Organizations
    • Unit Trusts
    • Managed Investment Companies
      • Open-End
      • Closed-End
    • Other investment organizations
      • Commingled funds
      • REITs
      • Hedge Funds
  • 5. Open-End and Closed-End Funds
    • Shares Outstanding
    • Closed-end: no change unless new stock is offered
    • Open-end: changes when new shares are sold or old shares are redeemed
    • Pricing
    • Open-end: Net Asset Value(NAV)
    • Closed-end: Premium or discount to NAV
  • 6. Investment Policies
    • Money Market
    • Equity
    • Specialized Sector
    • Bond
    • Balance & Income
    • Asset Allocation
    • Indexed
    • International
  • 7. Costs of Investing in Mutual Funds
    • Fee Structure
      • Front-end load
      • Back-end load
    • Operating expenses
    • 12 b-1 charges
      • distribution costs paid by the fund
      • Alternative to a load
    • Fees and performance
  • 8. Example
    • An open-end fund has a total asset of $120 million and a liability of $10 million. It has 10 million shares outstanding. What is its NAV? It is sold with a front-end load of 5%. What is its offering price?
  • 9. Fund Returns
    • Page 106
    • A sophisticated example:
    • Problem 4.16 on page 121
  • 10. Table 4.2 Impacts of Costs on Investment Performance
  • 11. Exchange Traded Funds
    • ETF allow investors to trade index portfolios like shares of stock
    • Examples - SPDRs and Webs
    • Potential advantages
      • Trade continuously
      • Lower taxes
      • Lower costs
    • Potential disadvantages
  • 12. First Look at Mutual Fund Performance
    • Average mutual fund performance is generally less than broad market performance
    • Over certain horizons there is persistence in positive performance
      • Evidence is not conclusive
      • Some inconsistencies
  • 13. Figure 4.3 Diversified Equity Funds versus Wilshire 5000 Index
  • 14. Sources of Information on Mutual Funds
    • Wiesenberger’s Investment Companies
    • Morningstar (www.morningstar.com)
    • Yahoo (biz.yahoo.com / funds)
    • Investment Company Institute (www.ici.org)
    • Popular press
    • Investment services