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.
Potential drawbacks of divestment - There may be some loss of economies of scale. Fixed overheads would have a lower capacity to recover them. - Cash generated may not be
A revenue bond is a special type of municipal bond distinguished by its guarantee of repayment from revenues generated by a specifie
A company commissioned a valuation of its land and buildings for inclusion in its financial statements. The valuation document contained the following details:
Question 1 Explain the components of Indian Financial System Question 2 Write a short note on Primary and Secondary markets Question 3 Explain the Investment optio
LENDING RATES IN THE CREDIT MARKET One of the crucial decisions involved while extending loans is the lending rate. Intermediaries will base their lending rate decisions on thr
Explain the term- Maturities Debentures are sometimes grouped by length of time till maturity that existed on the date debenture was first issued. Money Market Securities matu
Explain the terminal value calculation at the end of the forecast period. Why is it necessary? The organization whose business operation is being valued is not supposed to sudde
The Investment Decision: - Investment decision as well known as 'Capital Budgeting' is related to the selection of long-term assets or else projects in which investments will be m
Explain the Difference between cash and profit Cash flow statement shows all the cash in and cash out for the organisation for that period. It demonstrates the cash generating
sums
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