Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Mutual funds
Mutual funds pool resources from a lot of individuals and companies and invest these resources in diversified portfolios of bonds, stocks and money market instruments. An open-ended mutual fund the main type of mutual fund continuously permits shareholders to sell redeem outstanding shares and investors to buy new shares at any time. The worth of these shares is determined by the value of the mutual fund's holding assets. Two major advantages characterise mutual funds. First mutual funds offer opportunities to small investors to invest in financial securities and diversify risk. Second mutual funds obtain advantage of lower transaction costs when they buy larger blocks of financial securities. There are two sections in the mutual fund industry long-term funds as well as short-term funds. Long-term funds comprise bond funds the funds that contain fixed-income debt securities and equity funds the funds that contain stock securities and hybrid funds that contain both debt and stock securities. Short-term funds are represented by money market mutual funds, funds that contain various mixes of money market securities and partially allow shareholders to write cheques against the value of their holdings the presence of deposit-type accounts makes money market mutual funds to some extent similar to depository institutions.
In the USA mutual funds are the second most significant financial intermediary in terms of asset size. In fact they are larger in comparison of the insurance industry but smaller than the commercial bank industry. The mutual assets of the nation's mutual funds increased to $9.5 trillion in 2006 according to the Investment Company Institute's official survey of the mutual fund industry.
Activity 2.5
From the 2007 Investment Company detail Book formed by the Investment Company. Write a brief explanation of how you think these events have determined the historical trend of the industry as described in Table US Mutual Fund Industry Number of Funds, Total Net Assets, Number of Share Classes and Number of Shareholder Accounts (2010 Investment Company
Intermediated funds by type of financial intermediary
Summing up as displayed the total funds intermediated by US financial intermediaries are US$25.17 trillion in year 2006. Commercial banks account for the maximum proportion followed by insurance companies, mutual funds and S&Ls.
What is in store for banking consolidation? A: Merger activity is a natural procedure by which companies make themselves more effective and better able to compete for customers
DQ #1: Discuss the challenges of VaR approaches in valuing risk. How does portfolio risk assessment differ from a single asset’s risk assessment? How do managers typically load ba
There are two ways to estimate yield volatility - historical volatility and implied volatility. Thus far we have discussed how to calculate volatility by estimati
Given the following information for Tandoori Grill Restaurant, calculate the total asset turnover and return on equity ratios: Net Profit Margin 8% Return on Assets 15% Debt R
Compare diversifiable and nondiversifiable risk. Which do you think is more important to financial managers in business firms? Diversifiable risk is able to be dealt with by of
Q. Explain Dividend Policy Decision? Dividend Policy Decision: - The financial management has to make a decision as which portion of the profits is to be distributed as dividen
Portfolio Diversification The objectives of diversification are to: Reduce the variability of the fund's total return; Reduce the exposure to any single component of t
RISK RETURN RELATIONSHIP A business operates in a market environment, which is not within its control. It is exposed to several dangers from the internal with external sources
Interest rate risk is the risk wherein the investor in bonds faces the risk of a fall in his bond price as and when there is a rise in the market interest r
Problems in primary market?
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd