Benefits Of Investing A Mutual Fund

Benefits Of Investing A Mutual Fund
!!!What Are Mutual Funds?
Before we go over when to buy and sell a mutual fund, let 's discuss exactly what a mutual fund is.
A __mutual fund__ is simply a pool of money from different people like you; it is professionally
managed with the purpose of investing in different securities. The business or bank that manages a
mutual fund and attempt to produce income for investors is referred to as a __money manager__.
Since mutual funds are professionally managed, they are ideal for a person who has very little
knowledge of investing.
There are several advantages of investing in a mutual fund. The biggest advantage is the
diversification it offers. One mutual fund might invest in stocks of large companies and others may
invest in U.S. Treasury bills. Whatever the mutual fund offered by the bank is investing in, each
investor in the fund shares in the fund 's gains or losses. It is important to remember that mutual
funds are not stocks, they are portfolios of things like stocks and bonds.
!!!Choosing A Mutual Fund
In business or even in life, the quality of management plays a direct role on the success of the
venture. The quality of management offered for a mutual fund is no different. In the investment
world, mutual funds are either actively managed or indexed. __Actively managed funds__ uses
more human capital to actively manage a fund 's portfolio, they use expertise and research to
determine what securities to buy or sell. __Indexed funds__ are the opposite of active,
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An Overview of Mutual Funds
Mutual Funds – Mutual Funds have become increasingly popular in the last 20 years, with the
number of investors rising to 80 million people. This adds up to half the households in America
owning mutual funds, with most having a basic knowledge on the matter. A mutual fund is a group
of stocks and/or bonds put together, to be invested in as one, and similarly to stocks, investors own
shares, which signify a partial ownership on the fund. Making Money off Mutual Funds – Seeing as
funds are a collection of stocks and bonds, investors tend to receive dividends on the stocks and
interest on the bonds. Though it is not as direct as when investing in them, funds distribute these
dividends and interests to the investors. – In the case that the ... Show more content on
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As with the other funds, equity funds can be divided in different types, due to the various types of
equities. – Depending on the equity fund, they invest depending on size and value of the company,
which can be explained through a style box. The company can be one of three styles of investment.
It can have a growth style of investing, meaning that the company has a high earnings and is
predicted to grow. These are often technology companies. (More on this can be read under Style of
Investment). The other style is value, meaning that the company, that is predicted to do well
financially in the future. Then, if the company cannot be placed in these two categories, the
investing style can be a blend, simply meaning that it can't be characterized by value or growth
style. The other way of categorizing companies in a Morningstar style box, is through the size of the
company. Once again, there are three categories INSERT MORNINGSTAR STYLE BOX + LINKS
TO SPECIFIC TYPES (press one of the boxes, to learn what type of funds...) Global/International
Funds – As can be deducted from the name, international funds only invest internationally, and can
also be referred to as foreign funds, while global funds invest everything, which includes in the
country. – Unlike other funds, it is difficult to assess whether these funds have high risks, though it
is important to realize that other countries may have slightly

What Is The Five Mutual Funds
In this report, we intend to observe, select, and critically analyze five mutual funds and produce an
optimally risky portfolio. After thorough evaluation, we agreed upon the following mutual funds;
Vanguard PRIMECAP Fund (VPMCX), Harbor Small Cap Value Fund (HASCX), Vanguard Tax–
Managed Capital Appreciation Fund (VTCIX), Victory RS Small Cap Growth Fund (RSYEX), and
Allianz GI NFJ Mid–Cap Value Fund (PQNCX). We selected these particular funds due to historical
performance and future growth potential. We used the Standard and Poor's 500 Index (S&P 500) and
the Dow Jones Industrial Average (DJIA) as our benchmarks to evaluate and determine performance
and returns. We selected these mutual fund styles based on the Morningstar's Style Box, ... Show
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The optimal investment weights for our portfolio are 21.20% in VPMCX, 11.00% in HASCX,
11.40% in VTCIX, 1.80% in RSYEX, and 53.60% in PQNCX.
Part 1: Descriptive Data and Summary Statistics of the Five Mutual Fund
Table 1:
We selected 5 mutual funds that have 80% of more invested in stock equity securities in the mutual
fund. The 5 mutual funds all have different investment styles according to Morningstar. The
investment objective defines what each mutual fund's long term goals are. It includes things such as
required return, the risk tolerance, and investment time horizon. The investment style is the different
strategy used to set asset allocation of the mutual fund. It sets expectations for long term portfolio
performance. For example, VTICX focuses on large blend, where HASCX focuses on small blend;
meaning that they will target different portfolio asset allocations. Each fund will allocate its funds
differently and in different proportions. The investment strategy is a set of rules, behaviors or
procedures designed to guide an investor's selection of an investment portfolio. For example,
VTICX looks into stocks that pay lower dividends and are included in the Russell 1000 Index so
they can provide a tax–efficient investment return consisting of long–term capital appreciation.
Behind every capital investment there is a strategy. Arithmetic mean returns are the total average of
the returns for the last ten years (07–16) of

The Collapse Of Washington Mutual Essay
J.P. Morgan planned to close branches of Washington Mutual that J.P. Morgan was already settled
and successful in.
Sidel, Robin, David Enrich, and Dan Fitzpatrick. "WaMu Is Seized, Sold Off to J.P. Morgan, In
Largest Failure in U.S. Banking History." WSJ. Wsj.com, 26 Sept. 2008, 25 Nov. 2016.
Sidel, Enrich, and Fitzpatrick discuss what lead to the collapse of Washington Mutual back in 2008.
Leading up to the collapse of Washington Mutual, the downfall of the housing market was
impacting the mortgage portfolios of Washington Mutual. A month before the collapse the bank tried
to auction itself off, with little to no offers. Washington Mutual's customers began pulling out their
deposits, reaching $16.7 billion in just a couple days after Lehman Brothers had filed for bankruptcy
protection on September 15, 2008. Because of the overwhelming amount of deposits that had been
pulled from the bank, Washington Mutual did not have enough cash or liquidity resources to meet
their obligations and in turn proved to be an unsafe bank to do business with. The FDIC rapidly set a
deadline for offers by parties interested in taking over the bank on a Wednesday instead of the usual
Friday that the FDIC has been known to do in the past. Eventually on that Thursday, J.P. Morgan
bought Washington Mutual for $1.9 billion. J.P. Morgan was able to start business in states that they
had not been apart of before including California and Florida, where Washington Mutual had over
900 branches located.

Disadvantages And Disadvantages Of Mutual Funds
3.1INTRODUCTION: A Mutual Fund is a kind of trust that pools money which shares common
financial goals from a group of investors and invest the money. The Fund is mainly a corporation
where sole business is to collect and invest money or fund. You combine the pool by buying shares
in the fund. Then the money is invested by a team of professionals who research bond, stock and
other assets and then place the money as good they can earn the returns. There are several kinds of
mutual fund. Funds can also be open ended and close ended funds. Open ended schemes sell their
shares to those who are willing to buy. The money collected is invested in capital market
instruments such as debentures, shares and other securities. The income which is been earned or got
from this investment or even from capital appreciation is distributed or shared by its unit holders in
proportion to the number of units owned by them.

Mutual Fund and Fund Answer A.
Question 1
1.
Which type of health insurance pays part of all of the surgeon 's fee for an operation
Answer
a. surgical expense
b. hospital expenses
c. physician 's expense
d. major medical expense
3 points
Question 2
1.
Health insurance typically includes
Answer
a. deductibles b. out–of–pocket limits
c. co–payments d. all of the above
3 points
Question 3
1.
Driver classification includes information on a person 's and is used to set auto insurance rates
Answer
a. type of automobile
b. place of residence
c. credit rating
d. driving habits
3 points

Question 4
1.
Which of the following are important provisions to your life insurace contract ... Show more content
on Helpwriting.net ...
insurance index
d. cash value index
3 points
Question 20
1.
Which type of will has been gaining polpularity due to the increased exemption?
Answer
a. simple b. traditional marital share
c. exemption trust
d. stated dollar amount
3 points
Question 21
1.
Which source of investment information provides the most current data
Answer
a. newspapers b. corporate reports
c. business periodicals
d.
Moody 's Investment Reports
3 points
Question 22
1.
Which of the following investments would have the greatest potential for safety
Answer
a. government bonds
b. stocks c. commodities d. options 3 points
Question 23
1.
Which of the following investments would have the greatest potential for risk
Answer
a. preferred stock

b. corporate bonds
c. options d. bank accounts
3 points
Question 24
1.
When stocks are being traded between investors, they are traded in what market
Answer
a. investment banking
b. primary c. secondary d. efficient 3 points
Question 25
1.
Trusts can be
Answer
a. callable or noncallable
b. revocable or irrevocable
c. cumulative or noncumulative
d. participative or nonparticipative
3 points
Question 26
1.
The first step in retrirement planning is to
Answer
a. estimate your spending needs
b. estimate the inflation rate
c. evaluate your planned retirement income
d. analyze your current

Mutual Aid Group Analysis
A mutual aid group must have an established purpose. This is done in an effort to avoid confusion
and misunderstanding of what is expected of the members as well as what they should expect to get
out of the each other and the professional. There are two main purposes in this particular group. the
first goal is to have each member positively contribute according to their individual comfort level so
that everyone in the team will be exposed to and learn new mutual aid development skills as a
whole, to help themselves, as they help one another. The second one is to acquire knowledge which
could be used to cope with everyday stress in a more positive, yet practical manner. In order to be
able to do this successfully, we must all work towards identifying ... Show more content on
Helpwriting.net ...
I figured in this first session anxiety was at a rise and my intention was to avoid causing any more
by pressuring members to go in a particular order which they basically had no choice over.
Introductions also cannot be dismissed as merely a requirement or need. As Shulman (2016) states
"the advantage of introductions is that they help group members break the ice and begin to speak
from the start (427). As the facilitator of a first session, this is key because breaking the ice between
members is one of the main goals of a mutual aid group. After the introductions were completed, we
went into the "Word Association" game, in which I said a "random" word and ask each member to
share what is the first word that pops into their mind. This was done to be able to collect as Shulman
(2016) states "minimum, relevant information since at this point discussion of the working
contracted has not been established

Essay On Mutual Fund
Maybe you won't find the single best mutual fund investment for 2015, but you can get hooked up
with some of the best funds around if you know what to look for. We're talking about both the stock
and bond variety here, and if you think that the best funds for 2015 will be those with the best
mutual fund investment management team – think again.
These packaged investments are large professionally managed portfolios of securities (like stocks
and bonds) where investors pool money by buying shares. They all charge for their services and
claim to offer great service and some of the best funds around. Some tout past investment
performance, claiming to have the best mutual fund investment team in the business. In the years
leading up to 2015, ... Show more content on Helpwriting.net ...
But you can control one major factor that directly affects both fund performance and your net
returns for 2015 and beyond: the cost of investing.
The best funds for the past few years have been no–load "index funds". These are passively
managed to simply mimic the performance of major stock and bond indexes vs. trying to outperform
them. Since time has vindicated the fact that actively managed funds DO NOT significantly
outperform over the longer term, why pay an upfront sales charge (load) of 5% (or more) to invest,
and/or 2% or more in ongoing expenses and fees every year for active management? The best
mutual fund investment keeps costs low, and never underperforms its benchmark, which is an index.
The cost of investing can be less than ½% per year for expenses. Period. Now let's get more specific
about the best funds for 2015 and beyond. The best mutual fund investment for stocks: one with no
load (sales charge) that tracks a major stock index like the S&P 500 Index. This will perform right in
line with the market as measured by the same index that actively managed competitors try to beat
(and usually can't due to their high cost of active management).
The best mutual fund investment in the bond arena: one with no load and mid–to–high quality that
tracks an intermediate–term bond index. Think of bond funds (which people buy for the dividend
income) like this: if you pay a 3% load (sales charge) upfront to buy it and 1% a

Mutual Fund And Mutual Funds
Mutual funds can be dated as far back as 1774, when Adriaan van Ketwich created the first ever
trust fund leading to King William I in 1822 getting his idea to create the first documented closed–
end investment. It was appealing for investors with small amounts of capital to invest their money
together and invest more diversely while reducing risk drastically. It was after this in mutual fund
boom in the Netherlands that funds started to take off like this in Switzerland then again in Scotland.
This idea didn't move to the United States until the 1890s. The following fund was called The
Boston Personal Property Trust and was formed in 1893. It was also a close–ended fund. In 1907 the
Alexander Fund was created in Philadelphia and was the ... Show more content on Helpwriting.net
...
Mutual funds have the same concepts as stocks; if the company makes a profit then you will earn
dividends. If the company does poorly so will your investment. When you invest in mutual funds
you will have a professional investment manager who buys and sell securities on you part, which to
some investors can be a turn off. Many investors prefer to select all their own stocks and bonds and
to rigorously check financial histories and record before making a choice. Other times people who
maybe do not know how to properly investigate before investing or more times than none just do not
have the funds sufficient enough to invest.
Selection
When an investor decides that they are ready to invest it can be over whelming. It has been reported
that there are approximately 20,000 mutual funds available to choose from. To make it even trickier
there are "types" of mutual funds. I will briefly explain what the seven most common funds are. The
number one choice for many investors are money market funds. Investors in this category are
normally very risk averse and have this account mostly for retirement purposes. These funds will
invest in short–term fixed income securities, to include, government bonds, bankers' acceptances,
treasury bills and many other low risk investments. Of course with these low risk investments there
are low returns to be expected. Generally why an older person who is not looking to gamble in the
mutual

Advantages And Disadvantages Of Mutual Fund
1.1 Introduction of financial market:
High return and high risk are correlated to each other and the same can be applied in financial
market. In financial matters, the term market implies the total of purchasers and vendors and the
exchanges between them. A financial market is a market where the participant's sale and purchase
financial securities, commodities and other negotiable items of value at a pre–determined price
derived from demand and supply mechanism.
Figure.1.1: Financial Market Components
The financial markets have basically two major components:
1) Capital market
2) Money market.
Capital Market is a market where long term securities are traded. It is a place from where the
business sector will fulfill its demand for long ... Show more content on Helpwriting.net ...
Every investment company appoints a fund manager who invests the money in different investment
opportunities. These could run from shares to debentures to currency market instruments, contingent
on the plan's expressed targets. The income earned through these investments and the capital
appreciation acknowledged by the plan is shared by its unit holders in extent to the quantity of units
claimed by them. Therefore a Mutual Fund is the most appropriate investment for the investor as it
offers a chance to put resources into an enhanced, professionally managed basket of securities at a
moderately low cost. Mutual fund schemes are offered on the basis of structure and investment
objectives.
a) Structure based schemes:
i) Open–Ended Schemes: These schemes do not have a fixed maturity period. Under this an investor
can buy and sell the units at any point of time. The main feature of this scheme is liquidity which
enables the investor to invest and redeem units at any point of time in the scheme. ii) Close–Ended
Schemes: The schemes have a fixed maturity of say 2 to 15 years. One can directly buy the
investment in the scheme at the time of issue and thereafter sell the units of the scheme on the stock
exchange where they are listed. The units of these scheme were redeemed at NAV (Net Asset

Notes On Mutual Fund Industry
CHAPTER – I
OVERVIEW OF MUTUAL FUND INDUSTRY IN INDIA
CONTENTS:
1.1 Introduction
1.2 What is Mutual Fund?
1.3 Evolution of Mutual Fund Industry
1.4 Universal Role of Mutual Fund
1.5 Organization Structure of Mutual fund
1.6 Foundation of Mutual Fund in India
1.7 Growth of Mutual Funds in India
1.8 Kinds of Mutual Funds
1.9 Benefits of Mutual Funds
1.10 Drawback of Mutual Funds
1.11 Mutual Fund & Capital Market
1.12 Role of Security Exchange Board of India
1.13 Role of Association of Mutual Fund in India
1.1 INTRODUCTION:
The Indian financial system based on four basic parts like money Market, money establishments,
money Service, and money Instruments. All area units play basic position for light events for the
relinquishing of ... Show more content on Helpwriting.net ...
in keeping with the expansion monetary sector and second generation restructurings its ought to
execution of the financial sector. It's conjointly ought to providing the economical service to the
capitalist largely if the investors area unit offer bit, in this purpose of read the investment trust play
very important for higher service to the little investors. The most vision for the analysis for this
study is to scrutinize the performance of 5 star rated mutual funds, given the load of risk, return, and
assets beneath management, web assets worth, value and value earnings quantitative relation.
1.2 WHAT IS A MUTUAL FUND?
Mutual fund is that the pool of the cash supported the trust who invests the savings of a number of
investors who shares a standard money goal, just like the capital appreciation and dividend earning.
The cash therefore collect is then invested with in capital market instruments such as shares,
debenture, and foreign market. Investors invest cash and obtain the units as per the unit price that we
have a tendency to refer to as NAV (Net Assets Value). investment company is that the most suitable

investment for the soul because it offers a chance to speculate in wide–ranging portfolio
management, sensible analysis team, professionally

Liberty Mutual Contribution Report
Liberty Mutual Hiring Team, I'm excited to be writing you about the opportunites in your claims
department. I've worked closely with insurance representatives and found their function to be key in
facilitating coverage for those in need. Liberty Mutual has impressed me with its altruistic pursuits
on a very personal level, by aiding myself and other volunteer fire fighters in the prevention of fires
in my community, (Chewelah, Wa). As i've researched further into LM's contribution report, I've
found that LM truely values giving back and it shines true through its tremendous
employees/corporate donations. This inspired my goal– to use the tool of my experience to become
a pillar, not only in my team, but as a support for those in need. This

Mutual Funds Advantages And Disadvantages
Things you need to Know about Direct Mutual Funds
A mutual fund is a professionally managed fund that accumulates money from numerous financial
specialists to buy securities. There is no legitimate meaning of the word "mutual fund". It is a
collective investment product that are controlled and sold to the general public on a daily basis.
Investment in Mutual fund is lot easier than selling and buying of individual stocks. It also gives
flexibility to users to sell their fund any time.
You can invest in a mutual fund scheme under two ways:
Through a mutual fund distributors (Regular plans)
Directly with the funding firm (Direct plans)
Under regular plans, investment the mutual fund is done through a distributor or a channel partner.
Investment from regular distributor or online fund investment platforms such as AxisDirect falls
under regular plans. The commission paid can differ across schemes and even across distributors.
Mutual fund does not directly charge the ... Show more content on Helpwriting.net ...
Advantages and Disadvantages of Direct MF over Traditional MF
Advantages
Lower Expense Ratio turning out to be Higher Returns for investors.
Equity funds delivered 128 basis point higher returns from past few years.
Disadvantages
Investors should have prior knowledge of the funds. Investors should know the difference between
index funds and midcap opportunity funds. Investors must understand how the share market is doing
, how mutual funds work, evaluate track records of funds and most of all, will need to have the time
to devote to research on which fund to invest.
Major challenge is the legwork and paperwork required. If you are investing for the first time, you
have to submit documents to the fund firm. You need to visit a branch office and fulfil the KYC
formalities.
Disruptors for Direct Mutual Funds
Below two are the major disruptors for the Direct Mutual fund schemes:
Advisers
Financial

Disadvantages Of Mutual Fund Management
1 Introduction:
Mutual funds combine the savings of a large number of investors and manage them as a single pool
of money. Instead of investors worrying about what stock or bond or commodity to invest in,
professional fund managers do the job. Mutual funds are run by mutual fund companies, also as
Asset Management Companies (AMCs). Each AMC operates a number of fund schemes that suit
different type of investment needs.
For individual investors who don't have time to study and research investments, mutual funds are
the best option for reaping the benefits of diversified investments with minimum effort. In most
funds, it is possible to start investing with as little as a few hundred rupees. Also, unlike many other
investments, mutual fund investments are generally liquid in nature and can be redeemed without
any delay.
The benefit of investing ... Show more content on Helpwriting.net ...
One can also analyse whether a scheme prefers safer (lower returns) securities or riskier (higher
returns) securities. In the case of hybrid schemes, the mix of both equity and debt investments can
be ascertained to evaluate the portfolio.
Management: Fund management is a fairly creative and personality–oriented activity. This may not
be true for some types of schemes like short–term fixed–income schemes and, of course, index
schemes, but equity investment is more of an art than a science. When you are buying a scheme
because you like its track record (and unless you can foresee the future, that's the only way to buy a
fund), what you are actually buying is a fund manager's (or sometimes a fund management team's)
track record.
What you need to make sure is that the fund manager who was responsible for the part of the
scheme's track record that you are buying into is still there. After all, high–performance equity
scheme with a new fund manager is actually like a new fund offering to some

Different Types Of Mutual Funds
Types of Mutual Funds
We have seen many evolutions in the stock market since its inception. Mutual funds have lasted
through many of the changes we have seen over time and show no real sign of faltering. Below you
will find a brief description of the various types of mutual funds currently on the market.
Equity Funds. These funds deal with equity shares of corporations. They carry not only high risks
but also the opportunity for high rewards. Depending on the industry involved, these funds may be
sector oriented (technology funds will invest in emerging technologies for example) or diversified
meaning they consist of many funds from different sectors.
Debt Funds. As their name applies these funds deal primarily with debt–oriented mediums ... Show
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If you have a little bit of adventure but don't want to 'risk it all' then perhaps the balance fund is your
best destination.
Price Determination
Once you have a basic understanding of the available options, the next step lies in understanding the
price and how it is determined. The income of mutual funds is generally acquired in the form of
interest, dividends, and trading. In debt securities however interest income is all but assured. This is
not the case when dealing with equity stocks and the dividend in these situations depends on the
profits earned by the company among other factors.
When investing in debt funds it may be that your best interest would not be a mutual fund. If you
can afford the investment without the mutual fund you should determine which would be best for
your situation. You want to choose the route that will offer you the higher reward. Keep in mind that
market trends do not carry quite the weight when dealing with debt funds, as they will with equity
funds.
Equity funds offer trading that is based on the perception of the fund manager as to what the market
is preparing to do and the current risks vs. the potential reward. There are many things that will
affect a stocks future from legislation to competition and millions of things in between that aren't
limited to technological advances and scientific breakthroughs. Thus the higher risk nature of this
particular type

Essay On Mutual Funds
Mutual funds are investments vehicles which allow you to be broadly diversified by owning a large
array of stocks or a particular investment instrument. Funds are managed by a single individual or a
team of managers. Their job is to maximize your investment within the fund's investment criteria.
The decision made by the fund manager(s) will determine whether you see a financial gain or loss
on your investment. Mutual fund managers are responsible for researching investments, as well as
buying and selling securities. Mutual fund companies pool money from thousands of investors. Each
of those investors becomes a shareholder in that fund.
Types of Mutual funds
There are literally thousands of mutual funds available for you to choose. ... Show more content on
Helpwriting.net ...
Generally sector funds have higher expenses than general funds.
Bond funds–Do you believe the bond market will outperform the stock market? Yes, bond funds are
available and there is a wide variety to choose. There are short term Us Government bond funds,
municipal bond funds, international bond funds, high yield (junk bond) funds..well you get the
point.
Hybrid funds o further enhance your portfolio choices, you can elect to purchase a hybrid fund. Also
known as balanced funds, these mutual funds typically invest anywhere from 50–70 percent in
stocks and the reminder in bonds and cash. The managers of these funds typically have discretion
how the fund will be balanced.
Index Funds–Index funds are generally passively managed funds designed to closely match their
corresponding index. Index funds do not allow their fund manager the latitude of selecting or
become overweight a particular stock or sector within the fund. It is their job to match the
corresponding index The only time a mutual fund would sell a stock in a passively managed fun is if
the corresponding was reconfigured. For example, when Microsoft was added to the S&P 500 Index,
those mutual funds who mirrored the S&P 500 Index, were forced to purchase Microsoft so they
would stay in lock step. Index mutual funds have three distinct advantages over actively managed
funds.
1) Low turnover–This will minimize your tax burden at the end of the year. After all, it's not how
much

The Characteristics And Features Of Mutual Funds
1.1 General Introduction
The term investment refers to the commitment of funds made with an expectation of some positive
returns. Two essentials aspects of investment are that–firstly it involves waiting for returns, and
secondly it involves an element of risk of not getting what is expected of the investment. Basically
investment means purchase of financial asset that yield a return, which is proportionate to risk
assumed over some future period of time.
In finance, investment means buying securities or other monetary or paper (financial) assets in the
money markets or capital markets, or other in fairly liquid real assets, such as good as an
investment, real estate or collectibles with a view to earn some gain over a period of time.
1.2 Features of Investment
All the investment have the following features:
Return
Risk
Safety
Liquidity
... Show more content on Helpwriting.net ...
Professional Management
Mutual Funds provide the services of experienced and skilled professionals, backed by a dedicated
investment research team that analyses the performance and prospects of companies and selects
suitable investments to achieve the objectives of the scheme.
2. Diversification
Mutual Funds invest in a number of companies across a broad cross–section of industries and
sectors. This diversification reduces the risk because seldom do all stocks decline at the same time
and in the same proportion. You achieve this diversification through a Mutual Fund with far less
money than you can do on your own.
3. Convenient Administration
Investing in a Mutual Fund reduces paperwork and helps you avoid many problems such as bad
deliveries, delayed payments and follow up with brokers and companies. Mutual Funds save your
time and make investing easy and convenient.
4. Return Potential
Over a medium to long–term, Mutual Funds have the potential to provide a higher return as they
invest in a diversified basket of selected securities.
5. Low

What 's A Mutual Fund?
What 's a Mutual Fund?
By Amy E. Buttell | Submitted On February 11, 2013
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Mutual funds are pools of money. Money from many different individual investors can be pooled
with money from, say, the retirement fund of a global corporation.
This money is managed full time by professionals who are paid for their financial management
expertise.
Mutual funds invest in a portfolio of stocks (equities), bonds, or money ... Show more content on
Helpwriting.net ...
You can also transfer your money from one fund to another.
Selection: There is a fund available for virtually any type of market sector that you might be
interested in. A mutual fund screener is a good way to find high–quality funds for your portfolio.
There are also mutual fund newsletters that provide investors with fund profiles and information.
Liquidity: They offer an important combination of appreciation potential plus liquidity. Shares can
be redeemed at the end of each day, based on the fund 's net asset value (NAV).
Concise information: Based on mandates from the Securities and Exchange Commission (SEC),
fund companies are obligated to provide a simple, easy–to–understand prospectus and investor
reports. A prospectus spells out a fund 's goals, strategies, fees, and expenses. The shareholder report
describes the fund 's most recent performance.
Protection: While investors are not insured against investment loss, rules do exist that regulate
mutual fund transactions, advertising, and communications with investors.
The Disadvantages of Mutual Fund Investing
No guarantee: As previously noted, mutual fund investors are not protected by any guarantees

against losses in their fund investments. Stock funds invest in stocks, and the stock market rises and
falls. Individual holdings within a fund, and individual funds, fluctuate in value.

Research Questions On Mutual Fund
Sections 1: Research question Mutual fund has been existing for a long time, but there are still a lot
of details about it are not very clear. Generally, this paper is discussing not only the overall
performance of mutual funds, but also the functions of each subpart and how are they related to each
other. Specifically, there are several questions been answered: how is mutual funds' overall
performance? What is the factor that affects its behaviour the most? How does each composition
affect the overall performance? Will there be any differences between the actively managed funds
and passively managed funds? How are mutual funds' performance compared with other market
index during the past, specifically from 1975 to 1994? How to understand the fund's performance by
looking at the correlations and so on? By studying these questions separately, a better understanding
of mutual funds and their properties will be obtained.
Section 2: Contribution (the main findings of the paper This paper presents a new modelling
method, which enable us to analyse mutual fund industry in great details. By merging two sets of
database together, it will be easier to make comparisons, as well as analysing what is the factor that
causes some certain behaviour. On top of that, it will be easier and more direct to determine the
relationship between the management and performance. Generally speaking, this paper unravels
some properties found in the mutual fund market. Mutual funds held stock

Case Study On Mutual Fund
PART 1: ORGANISATION STUDY
CHAPTER 1: INTRODUCTION, PROFILING OF INDUSTRY, COMPANY AND PRODUCT
1.1 INTRODUCTION:
Mutual fund Industry was introduced in India 1963 with the formation of Unit Trust of India. During
the last few years many extraordinary and rapid changes have been taking place in the Mutual fund
industry. Indian economy is highly developing. The development is taken place due to the growth in
the financial system.
Institutions often trade of shares and institutional order's can have a major impact on market
volatility. In smaller markets, institutional trades can potentially destabilize the markets. Moreover,
institutions also have to design and time their trading strategies carefully so that their trades have
maximum possible ... Show more content on Helpwriting.net ...
1. A trust who share a common financial goal which pools the savings of a number of investors.
2. It is a trust which helps investors to achieve their investment goals through the way of funds.
1.2.2 CONSTITUENTS OF MUTUAL FUNDS
1. Sponsor
2. Trustee
3. Asset management Company
4. Registrars and Custodians
The Portfolio Manager allows the investor to view and track his/her investments on an ongoing
basis. It offers a wide variety of portfolio evaluation options: Snapshot, Gain/Loss, Year
(High/Low), News & Opinion, Fundamental and Fund Performance.
1. Automatically updates current market values of stocks and funds through current prices.
2. Includes each investment's portfolio weighting
3. Enables manual/automatic updation of all kinds of transactions such as: Buy, Sell, Systematic
Investment Plan, Systematic Withdrawal Plan, Dividends, Rights, Bonus and Splits.
4. Allows modification or deletion of any holding or transaction
5. Provides you with Return on Investment of your holdings.
The flow chart below describes broadly the working of a mutual

Mutual Funds, Vanguard Paper
Vanguard Mutual Fund Evaluation
FIN/420
1/26/2014
The Vanguard Group The Vanguard Group offers an array of mutual funds, exchange–traded funds,
brokerage, and asset management. When choosing and comparing mutual funds, there are
characteristics that you need to first evaluate. This paper will review five different categories of
mutual funds that Vanguard Group offers its investors.
Actively Managed Common Stock Fund The Selected Value (ticker VASVX) is an actively managed
common stock fund with a 4 star Morningstar rating with a minimum investment of $3,000. This
fund does not have a front or rear load fee. The total annual fund operating expenses are 0.41%
which means that for every $100 you invest, $.41 goes to paying the ... Show more content on
Helpwriting.net ...
The funds asset allocation will become more conservative over time, meaning that the percentage of
assets allocated to stocks will decrease while the percentage of assets allocated to bonds and other
fixed income investments will increase. This investment is superb for long–term investors like
myself.
The fund inception occurred on October 27, 2003, and has been managed by Michael Buek since
2014. The fund inception date tells us that the mutual fund has been around for 23 years and the
fund manager for one year. This fund has been up for ten years and down for one year which tells us
that the new manager may have not been the correct choice.
International Fund Developed Markets Index Admiral Share (ticker VTMGX) is a Vanguard
International Fund with a 3 star Morningstar rating and a $3,000 minimum balance. This fund does
not have a front or rear load fee. The total annual fund operating expenses are 0.06% which means
that for every dollar that you invest, $.06 goes to paying the person who sold you the fund. The
expense ratio is also low at 0.09%. According to "Best Vanguard Index Funds 2014 (2009–2015),
"the index fund provides investors low–cost diversified exposure to developed foreign markets. The
fund invests in companies located in Europe, Asia, and Australia, which make up 75% of the non–
U.S. equity market" (para. 2). There are five primary industries that this fund encompasses.

Disadvantages Of Mutual Funds
Mutual funds are investment plans that let you to pool your money together with additional
investors to purchase a collection of securities that might be difficult to recreate on your own. This
is often referred to like a portfolio. The price of the mutual fund, also recognized as its net asset
value is determined by the total value of the securities in the portfolio, divided by the number of the
fund's unsettled shares. This price varies based on the value of the securities held by the portfolio at
the end of every business day. Note that mutual fund investors do not really own the securities in
which the fund invests; they only own shares in the fund itself.
Mutual funds are a common choice amid investors because they commonly offer the ... Show more
content on Helpwriting.net ...
Balanced funds– These funds invest in a mixture of equities and fixed income securities. They
attempt to balance the aim of achieving higher yields against the risk of losing money. Most of these
funds monitor a formula to divide money amid the different types of investments. They tend to have
more risk than fixed income funds, but fewer risk than pure equity funds.
6. Index funds– These funds invest in equities or fixed income securities which chosen to mimic a
specific index such as the S&P/TSX Composite Index. The value of the units or shares of the fund
will increase or decrease as the index goes up or goes down. Some funds may track a great number
of the investments on an index, or a selection of the investments. Index funds typically have minor
costs than actively managed funds because the portfolio manager doesn't have to do as much
investigation or make as many investment decisions.
7. Specialty funds–These funds invest in equities or fixed income securities in a specific region, or a
specific sector. Or, they may focus on an emerging market, or a theme like socially responsible
investing. These funds sometimes have very high earnings. At the same time, there is a very great
risk that you could lose

Mutual Funds Essay
Mutual funds are an easy, convenient way to invest, without having to worry about choosing
individual stocks. A mutual fund can be defined as a single portfolio of stocks, bonds, and/or cash
managed by an investment company on behalf of many investors. The investment company
manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual
fund, they become a part–owner of a large investment portfolio, along with all the other
shareholders of the fund. The fund manager invests the contributions when shares are purchased,
along with money from the other shareholders. Every day, the fund manager counts up the value of
all the fund's holdings, figures out how many shares have been purchased by ... Show more content
These funds can also specialize in bonds, stocks, or some mix of the two. An international fund can
also specialize in a particular country or region of the world, such as the Pacific Rim, Latin America,
or Germany.
Equity–fund managers usually use one of three particular styles of stock picking when they make
investment decisions for their portfolios. First there is value, where a fund manager uses a value
approach search for stocks that are undervalued when compared to other similar companies. Next,
there is growth and those funds try to find stocks that are growing faster than their competitors, or
the market as a whole. These are often the stocks of well–known established corporations. There is
blend where managers buy both kinds of stocks, building a portfolio of both growth and value
stocks.
Only 25 years ago, there were fewer than 500 funds available. Today, there are over 7,000, with
more added every year. There are many advantages to buying mutual funds, but there are
disadvantages as well. Mutual funds can offer instant diversification, and diversification reduces
risk. For example, funds can reduce risk by spreading it among a large number of investments, if
one stock performs badly, its impact on the overall portfolio is lessened. Funds can also reduce risk
by investing in different asset classes: stocks (which can include international as well as U.S.
stocks), bonds, cash and

Mutual Funds
Chapter 04 Mutual Funds and Other Investment Companies Multiple Choice Questions 1. Which
one of the following invests in a portfolio that is fixed for the life of the fund? A. Mutual fund B.
Money market fund C. Managed investment company D. Unit investment trust 2. ______ are
partnerships of investors with portfolios that are larger than most individual investors but are still
too small to warrant managing on a separate basis. A. Commingled funds B. Closed–end funds C.
REITs D. Mutual funds 3. A __________ is a private investment pool open only to wealthy or
institutional investors that is exempt from SEC regulation and can therefore pursue more speculative
policies than mutual funds. A. commingled pool B. unit trust C. ... Show more content on
Helpwriting.net ...
Gross Asset Value D. Total Asset Value 21. Net Asset Value is defined as
________________________. A. book value of assets divided by shares outstanding B. book value
of assets minus liabilities divided by shares outstanding C. market value of assets divided by shares
outstanding D. market value of assets minus liabilities divided by shares outstanding 22. Assume
that you have just purchased some shares in an investment company reporting $500 million in
assets, $50 million in liabilities, and 50 million shares outstanding. What is the Net Asset Value
(NAV) of these shares? A. $12.00 B. $9.00 C. $10.00 D. $1.00 23. Assume that you have recently
purchased 100 shares in an investment company. Upon examining the balance sheet, you note the
firm is reporting $225 million in assets, $30 million in liabilities, and 10 million shares outstanding.
What is the Net Asset Value (NAV) of these shares? A. $25.50 B. $22.50 C. $19.50 D. $1.95 24. The
Vanguard 500 Index Fund tracks the performance of the S&P 500. To do so the fund buys shares in
each S&P 500 company __________. A. in proportion to the market value weight of the firm's
equity in the S&P500 B. in proportion to the price weight of the stock in the S&P500 C. by
purchasing an equal number of shares of each stock in the S&P 500 D. by purchasing an equal dollar
amount of shares of each stock in the S&P500 25. Which of the following is not a type of managed
investment company? A. Unit investment trusts B.

Mutual Fund And Mutual Funds Essay
INTRODUCTION
The growth of the Mutual Funds is very slow and it took really long years to evolve the modern day
Mutual Funds. Mutual Funds emerged for the first time in Netherlands in the 18th century and then
got introduced to Switzerland, Scotland and then to United States in the 19th century. The main
objective behind Mutual Fund investments is to deliver a form of diversified investment solution.
Later, the investors had a wide choices of diversified investment portfolio through the Mutual
Funds.
In India, the Mutual Fund concept emerged in 1960. The first open ended Mutual Fund was created
as public sector enterprise with the establishment of Unit Trust of India in 1964 under the Central
Legislation, i.e., Unit Trust of India Act–1963.
EVOLUTION OF MUTUAL FUND IN INDIA
Mutual Fund have emerged as strong financial intermediaries and have helped in increasing the
growth of Indian economy. Mutual Fund have provided financial stability and rationalised the
resource allocation process. The Mutual Fund industry has grown from a monopoly market to a
competitive market through the following phases:–
PHASE 1 – 1987 to 1987 Monopoly of UTI:
IN 1964, the UTI was formed by the Government of India. Its main objective is "to encourage
savings and investment and participation in the income, profits and holding management and
disposal of securities".
PHASE 2 – 1987 to 1993 Public Sector Financial Institutions:
In 1987, the first non–UTI Mutual Fund, SBI Mutual Fund was launched.

Mutual Fund Performance in Bull and Bear Market: The Case...
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. Later, first closed end mutual fund in
Pakistan was established in the year 1967 with the name of Investment Corporation of ... Show more
Francis and Fabozzi (1979) find that fund manager of the mutual funds do not reduce the beta of
fund in bear market and increase it in bull market in order to earn high risk adjustment returns for
the shareholders and mutual funds managers do not shift over the beta of funds to take high return of
market movements.
McDonald (1974 ) indicates that stated objectives are significantly related to subsequent measure of
systematic risk and total variability and to realize mean excess returns. During the discussed period
more aggressive objectives generally produced better performance of the funds when we find out the
ratios of mean return to beta or mean return to total variability. Higher risk funds usually appeared to
produce better return to risk performance than lower risks funds.
Madden, Nunn and Wiemann (1986) show that the alpha for the small capitalization mutual funds is
positive and significantly different from zero on consistent basis, while the capital of mutual funds is
not significant for the largest mutual funds. The overall results provide strong support for consistent
and significant inverse relation between performance of the mutual funds and the size of market.
Malkiel (1995) conclude that mutual funds not provide any clarification to keep a faith that
securities markets are extremely efficient. Most of the investor keep in mind the purchasing a low
expense index fund than give

Investment in Mutual Fund
[Type the company name] | INVESTMENT IN MUTUAL FUNDS AND SHARES –PROS AND
CONS | FINANCIAL MANAGEMENT | | TO, PRATIMA TRIVEDI | 12/9/2013 |
REPORT BY–
PARITOSH SINGH FS35
PRAKRITI FS40
PANKAJ KUMAR SINGH FS34
ROMANSHU VARSHNEY FS64
RAJNEESH SHARMA FS44
TABLE OF CONTENTS
Table of Contents ACKNOWLEDGEMENT 4 A. MUTUAL FUNDS 5 I. INTRODUCTION 5 II.
ROLE OF MUTUAL FUNDS IN THE FLNANCIAI, MARKET 5 III. MUTUAL FUNDS:
STRUCTURE IN INDIA 5 IV. GROWTH IN MUTUAL FUND INDUSTRY 6 V. IMPACT OF
THE GLOBAL FINANCIAL CRISIS 11 VI. GOVERNMENT POLICIES 11 VII. ADVANTAGES
OF MUTUAL FUNDS 12  Diversification. 12  Expert Management. 12  Liquidity. 13 
Convenience. 13  Reinvestment of Income. ... Show more content on Helpwriting.net ...
In this process, Indian mutual funds have emerged as strong financial intermediaries and are playing
a very important role in bringing stability to the financial system and efficiency to resource
allocation Mutual funds have opened new vistas to investors and imparted much–needed liquidity to
the system. III. MUTUAL FUNDS: STRUCTURE IN INDIA
Mutual Funds in India follow a 3–tier structure. There is a Sponsor (the First tier), who thinks of
starting a mutual fund. The Sponsor approaches the Securities &Exchange Board of India
(SEBI), which are the market regulator and also the regulator for mutual funds.
Not everyone can start a mutual fund. SEBI checks whether the person is ofintegrity, whether he has
enough experience in the financial sector, his net worth etc. Once SEBI is convinced, the sponsor
creates a Public Trust (the Second tier) as per the Indian Trusts Act, 1882. Trusts have no legal
identity in India and cannot enter into contracts, hence the Trustees are the people authorized to act
on behalf of the Trust. Contracts are entered into in the name of the Trustees. Once the Trust is
created, it is registered with SEBI after which this trust is known as the mutual fund. IV. GROWTH
IN MUTUAL FUND INDUSTRY
The Indian Mutual fund industry has witnessed considerable growth since its inception in 1963. The
assets under management (AUM) have surged to Rs 4,173 bn in Mar–09 from just Rs. 250 mn in

Mutual Funds Advantages And Disadvantages
1. Mutual Funds(Open ended) A Mutual Fund is an investment vehicle that is made up of a pool of
funds collected from many investors for the purpose of investing in securities such as bonds, stocks,
money market instruments and identical assets. Advantages: 1. Liquidity An advantage of mutual
funds is the ability to get in and out with relative ease. In general, you are able to sell your mutual
funds in a short period of time without there being much difference between sale price and the most
current market value. 2. Diversification By purchasing mutual funds, you are provided with the
immediate benefit of instant diversification and asset allocation without the large amounts of cash
needed to create individual portfolios 3. Professional selection of individual ... Show more content
Certainty about the specific investments in trust The money placed in an investment trust is used to
capitalize a fixed portfolio. Unlike mutual funds or hedge funds, for some investors, this is a key
advantage because they are given the ability to always know what they own. Disadvantages: 1.
Opportunity cost This means that by putting money in unit trust, you lost the opportunity to use it
elsewhere. Of course there is no guarantee that putting the money elsewhere will yield better
returns. In the same way, putting money in unit trust prevents you from investing it elsewhere, such
as, directly in the stock market. 2. Fees and charges The services provided by the unit trust fund
managers are not free. There are fees and charges payable by the unit holders to the unit trust
schemes. Granted these fees are almost negligible compared to the professional expertise received
by the investors, it is something the unite holders have to bear. 5. Other type of funds 1. Money
market funds It is open–ended funds which normally invest in short–term securities, usually one
year, for example treasury bills or Government bonds. Money market funds are greatly recognize as
being really safe and give a great

What Are Mutual Funds? Essay
What Are Mutual Funds and Different Types of Mutual Funds
By Vaibhav Bhadange | Submitted On June 06, 2012
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Mutual funds are a type of certified managed combined investment schemes that gathers money
from many investors to buy securities. There is no such accurate definition of mutual funds,
however the term is most commonly used for collective investment schemes that are regulated and
available to the general public and open–ended in nature. Hedge funds are not considered as any
type of mutual funds.
Mutual funds are identified by their principal investments. They are the 4th largest category of funds
that are also known as money market funds, bond or fixed income funds, stock or equity funds and
hybrid funds. Funds are also categorized as index based or actively managed.
In a mutual fund, investors pay the fund 's expenditure. There is some element of doubt in these
expenses. A single mutual fund may give investors a choice of various combinations of these
expenses by offering various different types of share combinations.
The fund manager is also known as the fund sponsor or fund management company. The buying and
selling of the fund

Mutual Fund Advantages And Disadvantages
There are various investment opportunities available today in financial market for an investor to
avail and earn returns. An investor has different options available today ranging from bank deposits,
debentures, fixed income, etc. where there is low risk as well as low return; to equity market having
a higher return to higher relative risk. Mutual Fund is an investment scheme which pools money
from investors to invest in a diversified portfolio of stocks. Every investor wants to invest in that
investment where risk minimized and the return of investment maximized. Mutual funds investment
is becoming significant all over the world and its popularity and demand is rising steadily (Nazir &
Nawaz, 2010).Mutual funds in Pakistan are created and managed by Asset Management Companies
and regulated by Securities and Exchage Comission of Pakistan. The investor purchase share with in
the fund however the quantity of shares in issue varies consistent with demand,thus the term open
ended.This implies that the value of share reflects the underlying net asset value ... Show more
The second initiation in this business sector was the Investment Corporation of Pakistan (ICP),
instituted in 1966.In 2001 the development of this sector was inconsequential with just 12 AMCs
and just 38 mutual fund (Asghar, e Kausar, Afza, & Bodla, 2013) After 2001, due to privatization
and liberalization strategy of government this sector indicated noteworthy development in the first
decade of this century i–e in 2010 we had altogether 135 funds including 105 open–ended funds
managed by 28 AMCs (Ahmad Abbasi & Syed Muhammad Amir Shah, 2012) The capital market
confronted difficult times amid 2008 and 2009, which decreased the demand for funds managed by
financial specialists and subsequently the retreat was a hard beginning of the month of June 2008.
According to SECP in 2014 the mutual fund investment assets are about 462.97

Role Of Mutual Fund For A Study Essay
Role of Mutual Fund in India– A Study
R.H.Ramesh, Asst.Professorof Commerce
SMYK,Govt.First Grade College. Telsang. Athani(Tq) Belagavi (Dist)
ramesh.hanumanthappakolhi@gmail.com Abstract
Savings form an important part of the economy of any nation. With savings invested in various
options available to the people, the money acts as the driver for growth of the country. Indian
financial systems too present multiple avenues to the investors. Mutual Fund is the most suitable
investment for the common man as it offers an opportunity to invest in a diversified, professionally
managed basket of securities at a relatively low cost. Each mutual fund scheme has a defined
investment objective and strategy. Mutual fund is a trust that pools money from a group of investors
(sharing common financial goals) and invest the money thus collected into asset classes that match
the stated investment objectives of the scheme. Since the stated investment objectives of a mutual
fund scheme generally form the basis for an investor 's decision to contribute money to the pool, a
mutual fund can not deviate from its stated objectives at any point of time. From above backdrop the
present study analysis role of mutual fund in general & Future Prospects of Mutual Fund Industry in
India in particular.
Key Words: Mutual Fund, Securities & Exchange Board of India (SEBI), Fast Moving consumable
Goods (FMCG), etc,
Introduction
"....Mutual funds are popular among all income levels. With a mutual fund, a

Mutual Insurance Company Of Iowa
Mutual Insurance Company of Iowa The Mutual Insurance Company of Iowa (MICI) has an office
in Des Moines, Iowa that is responsible for the processing of their insurance claims (Heizer &
Render, 2014). The company sales have grown at a rapid rate, and the volume of claims has as well.
However, due to the limited workforce, facility constraints, and administrative procedures, the
outflow of claims is substantially less than the inflow. It presents a major issue because the claim
processing time has been significantly increased. It has created customer dissatisfaction on a large
level and prompted many to take legal action against the company. Facts Ms. Cook realizes there is
no simple solution to this situation, but recognizes that something must be done to fix this
overwhelmed system (Heizer & Render, 2014). She decided to follow the Just In Time (JIT)
approach for its economic benefits and quality of work. It was facilitated through the part–time
employees that were brought in to clear the backlogs. JIT is an inventory strategy companies employ
to increase efficiency and decrease waste by receiving goods only as they are needed in the
production process, thereby reducing inventory costs (Investopedia, n.d.). The claim processing
team was provided with training for JIT strategy, and their jobs were redesigned to improve the
quality their work. The training consisted of claim processing, data entry, and cross–functions were
given for quick and enhanced work quality. Issue

A Study on Mutual Funds of India
CHAPTER 1
INTRODUCTION
MEANING | A Mutual Fund is a trust that pools the savings of a number of investors who share a
common financial goal. The money thus collected is then invested in capital market instruments
such as shares, debentures and other securities. The income earned through these investments and
the capital appreciation realised are shared by its unit holders in proportion to the number of units
owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it
offers an opportunity to invest in a diversified, professionally managed basket of securities at a
relatively low cost. In other words, Mutual fund is a mechanism for pooling the resources by issuing
units to the investors and investing funds ... Show more content on Helpwriting.net ...
It includes swot analysis, products and services.Chapter IV : Conceptual study.This chapter gives a
detailed information on the various concepts of mutual funds, types of mutual funds, fund houses
operating in India,Chapter V :Data analysis.This chapter analyses and interprets the data collected
from the questionnaire.Chapter VI : Findings suggestions and conclusion.This chapter gives details
about the findings from the study, suggestions for improvement and the conclusion.CHAPTER
2INDUSTRYPROFILEORIGIN, GROWTH AND DEVELOPMENT OF THE MUTUAL FUND
INDUSTRYThe mutual fund industry in India started in 1963 with the formation of Unit Trust of
India, at the initiative of the Government of India and Reserve Bank of India.First Phase – 1964–87
Unit Trust of India (UTI) was established on 1963 by an Act of Parliament. It was set up by the
Reserve Bank of India and functioned under the Regulatory and administrative control of the
Reserve Bank of India. In 1978, UTI was de–linked from the RBI and the Industrial Development
Bank of India (IDBI) took over the regulatory and administrative control in place of RBI. The first
scheme launched by UTI was Unit Scheme

Performance Of Islamic Mutual Funds
This particular section provides an overall comparison of performance of Islamic Mutual Funds,
which is important to consider empirically especially taking into consideration the fact that the
Islamic indexes provide different estimations for the performance of these mutual funds, particularly
during bullish and bearish periods. What is more important, the results of the current section appear
to be the same compared to the related studies devoting themselves to considering the
aforementioned question. Practical evidence tends to prove that the Islamic mutual funds generally
display continuous and sustainable under–performance once they are assessed from the perspective
of Islamic and traditional financial indexes. Still, it is worth ... Show more content on
Helpwriting.net ...
Still, a number of studies has been showing that there was no relevant and significant difference
between the performance of these funds in terms of both conventional and Islamic systems of
evaluation (Girard and Hassan, 2005). In particular, the famous and important Dow Jones Islamic
Indices (DJIS) reported significant outperformance during the period of 1996–2000, still showing
underperformance during the next 5 years once estimated in contrast to their traditional counterparts.
What is necessary to state in this perspective, regardless of the type of indices and systems of
evaluation, both of them show similar diversification and reward–to–risk traits, characteristics and
benefits. Further, considering the difference between the ethical and non–ethical funds, the
researchers tend to state that there is no difference between them, especially from the perspective of
the performance estimations utilized (Kreander et al., 2005). In addition, even less evidence is
reported regarding considerable difference between ethical and conventional funds in risk–adjusted
returns during the 1990–2001 period. Considering the time–variation in betas, it is worth stating that
their introduction results in considerable underperformance of the local American investment funds
and similarly high outperformance of the British ethical funds compared to their traditional
analogues (Bauer et

Mutual Fund Market Essay
AAbstract Fund–flows suggest that recent years have seen a significant shift of capital towards
passive investment strategies. There is evidence of investors' preference for a relatively low fees
passive strategies, usually in the form of index funds or exchange–traded funds (ETF). Undoubtedly,
this is shaking the active management dominated mutual fund industry to its core. Is this the
beginning of the end for actively managed mutual fund industry? Are we ready to sound the death
knell for active management? Some in active management has resorted to name–calling, resembling
kindergartners, and producing a research report with titled such as: "Is Passive Investing Really
Worse than Marxism?" Perhaps, Robert Fulghum's book, All I Really ... Show more content on
Helpwriting.net ...
It took another 150 year for pooled investments to arrive to the United States. On March 21, 1924,
Massachusetts Investors Trust launched the first modern day mutual fund, providing individual
investors with a cost effective way to achieve a diversified portfolio. Moreover, individual investors
gained the benefit of having their investments managed by professionals. Since then, academics and
practitioners alike have debated ad nauseam the value–add delivered by fund managers. Jensen
(1968) evaluated the performance of mutual funds from 1945 to 1964 and concluded that on
average, fund managers were not able to predict security prices well enough to outperform the
market. Concurring with Jensen, Samuelson (1974) found that it was nearly impossible to find a
fund manager who can outperform the market by holding a subset of securities of the market.
Henceforth, Samuelson advocated for the creation of a naïve portfolio that tracks the S&P 500 Index
(a market proxy). On August 31, 1976, the Vanguard Group launched the first index fund for
individual investors, the First Index Investment Trust. The introduction of this index fund initiated
the active–passive debate; the persistent dialogue around mispriced securities sustains

Mutual Fund Performance
Case a) US Mutual Fund Performance
Maastricht University | | | | School of Business & Economics | | | | Place & date: |
Maastricht, 5th December 2013 | | | | Name, initials: | Müller–Wilmes, VEMCroughs, ZWFWang,
WCGerdsen, BHARack, MD | | For assessor only | | ID number: |
I6076025I6075042I6117368I6075829I6064576 | | 1. Content | | Study: | International Business
Economics | | 2. Language structure | | Course code: | EBC | | 3. Language accuracy | | Group
number: | 1 | | 4. Language: Format & citing/referencing | | Writing tutor name: | Mike Langen |
| Overall: | | Writing assignment: | | | Advisory grade | | | | | Assessor's initials | |
Your UM email address: ... Show more content on Helpwriting.net ...
ct on Market Efficiency, Investment advice considering the impact of costs (Jessica/Miro)
Hot hand effect
Survivorship bias
Appendix
Single Factor model
E(rpassive) – rf = α+β RMarket+ ε R = E – rf
Passive | Excess Return | Standard Deviation | Alpha | Market | R2adj | SSGA S&P 500 index |
1,0 | | 0,07 | 1,00 | 0,95 | FIDELITY Spartan index fund | | | 0,04 | 1,01 | 0,94 | DREYFUS S&P
500 index fund | | | –0,02 | 1,01 | 0,95 | VANGUARD 500 index funds | | | 0,00 | 1,01 | 0,95 | BGI
index funds | | | 0,09 | 1,01 | 0,95 | All funds | 1,17 | 3,10 | 0,00 | 1,01 | 0,95 |
E(ractive) – rf = α+β RMarket+ ε R = E – rf
Active | Excess Return | Standard Deviation | Alpha | Market | R2adj | Aggressive growth | 1,07 |
4,87 | –0,31 | 1.18 | 0,74 | Growth | 1,01 | 3,65 | –0.17 | 1,02 | 0,96 | Income | 0,95 | 2,61 | 0,06 | 0,76 |
0,94 | Growthincome | 0,97 | 3,06 | –0,08 | 0,90 | 0,99 | Small cap | 1,14 | 4,32 | –0,05 | 1,02 | 0,68 |
All funds | 1,03 | 3,65 | –0,11 | 0,98 | 0,92 |
(1) Alpha tested for 0 and Market tested for 1 insignificant (2) At 10% significant, at 5% significant,
at 1% significant

Multifactor model
E(rpassive)–rf = α+βMarket RMarket+βSMB E(rSMB)+βHMLE(rHML)+ βMOME(rMOM)+ε R =
E – rf
Passive | Excess Return | Standard Deviation | Alpha | Market | SMB | HML | MOM | R2adj | All
funds | 1,17 | 3,10 | 0,06 | 1,01 | –0,26 | –0,01 | –0,03 | 0,99 |
E(ractive)–rf

Mutual Funds Essay
Available ONLINE www.vsrdjournals.com
VSRD–IJBMR, Vol. 2 (4), 2012, 167–178
RESEARCH COMMUNICATION RESEARCH COMMUNICATION
A Study of Opportunities and Challenges for Mutual Fund in India : Vision 2020
1
Sarish*
ABSTRACT
In this paper, I have undertaken a study on mutual funds. The mutual fund sectors are one of the
fastest growing sectors in Indian Economy and have awesome potential for sustained future growth.
Mutual funds make saving and investing simple, accessible, and affordable. The advantages of
mutual funds include professional management, diversification, variety, liquidity, affordability,
convenience, and ease of recordkeeping–as well as strict government regulation and full disclosure.
The Mutual Funds ... Show more content on Helpwriting.net ...
Investor plans for long horizon after considering the fundamental factors and assumes moderate risk.
The main objectives of rational investors are maximizing returns and minimizing risk, safety of the
principal, tradability and liquidity are his subsidiary objectives. Financial instruments can be
categorized by form depending on whether they are cash instruments or derivative
instruments: Cash instruments are financial instruments whose value is determined directly by
markets. They can be divided into securities, which are readily transferable, and other cash
instruments such as loans and deposits, where both borrower and lender have to agree on a transfer.
Derivative instruments are financial instruments which derive their value from the value and
characteristics of one or more underlying entities such as an asset, index, or interest rate. They can
be divided into exchangetraded derivatives and over–the–counter (OTC) derivatives. Alternatively,
financial instruments can be categorized by "asset class" depending on whether they are equity
based (reflecting ownership of the issuing entity) or debt based (reflecting a loan the investor has
made to the issuing entity). If it is debt, it can be further categorized into short term (less than one
year) or long term. Foreign Exchange instruments and transactions are neither debt nor equity based
and belong in their own category. A legal document such as a

Mutual Fund: An Introduction A Mutual Fund Is A Form Of
Mutual fund: An Introduction A mutual fund is a form of collective investment. It is a pool of money
collected from various investors which is invested according to the stated investment objective. The
fund manager is the person who invests the money in different types of securities according to the
predetermined objectives. The portfolio of a mutual fund is decided taking into consideration this
investment objective. Mutual fund investors are like shareholders and they own the fund. The
income earned through these investments and the capital appreciation realized by the scheme is
shared by its unit holders in proportion to the number of units owned by them. The value of the
investments can go up or down, changing the value of the ... Show more content on Helpwriting.net
...
Mutual funds save your time and make investing easy and convenient. Return potential: Over a
medium to long term, mutual funds have the potential to provide a higher return as they invest in a
diversified basket of selected securities. Low costs: Mutual funds are a relatively less expensive way
to invest compared to directly investing in the capital markets because the benefits of scale in
brokerage, custodial and other fees translate into lower costs for investors. Liquidity: In open ended
schemes, the investors get the money back promptly at net asset value related prices from the mutual
fund. In closed end schemes, the units can be sold on a stock exchange at the prevailing market price
or the investor can avail of the facility of direct repurchase at NAV related prices by mutual fund.
Transparency: You get regular information on the value of your investment in addition to disclosure
on the specific investments made by your scheme, the proportion invested in each class of assets and
the fund manager's investment strategy and outlook. Flexibility: Through features such as regular
investment plans, regular withdrawal plans and dividend reinvestment plans, you can systematically
invest or withdraw funds according to your needs and convenience. Affordability: Investors
individually may lack sufficient funds to invest in high–grade stocks. A mutual fund because of its
large corpus allows even a

Mutual Fund : An Open End Investment
A mutual fund is an open–end investment company that invests money of its shareholders in a
usually diversified group of securities of other corporations, as defined in the Merriam–Webster
dictionary. Mutual funds help with financing and investing opportunities. They give the small
investors a chance to invest their money in other areas besides stocks and bonds. There is multiple
mutual funds to choose from and different reasons why shareholders should choose them. As
popular as mutual funds have become, there is downfalls to them like most investment
opportunities. In 2003, mutual funds were giving a bad name when a scandal was brought public.
These opportunities and issues will be discussed. Becoming major suppliers of funds in the financial
market, mutual funds have become a very popular investment in recent years. Because of the
diversity of investments, portfolio management's expertise, and liquidity, mutual funds have grown
rapidly over the past few years. One of the most popular group's investing in mutual funds is people
with self–driven retirement plans. This provides professionally handled money and pooled risk.
There are more than 8,000 different mutual funds, with more than 88 million households owning
shares of one or more. Mutual funds pool investments by individual investors and use the funds to
accommodate financing needs of governments and corporations in the primary markets. Investments
in securities in the secondary markets are made as well. Mutual funds

Benefits Of Investing A Mutual Fund

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