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 are the types of major types of finance companies? There are three main types of finance companies: a. Sales finance institutions which make loans to customers of a cer
Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr
Starbucks future cash flows
Suppose that Harry and Steven make their living selling contraband at opposite ends of a town that is 1 mile long. Because it's a crowded city, the citizens use taxi-cabs for trans
QUESTION The Managing Director of your firm is thinking aloud about an appropriate gearing level for the company: "The consultants I spoke to yesterday explained that some t
How do opportunity costs affect the capital budgeting decision-making process? Opportunity costs reflect the foregone advantages of the alternative not chosen when a capital bu
Chu Chu Train Systems is expected to pay a $3.25 annual dividend (D1 = $3.25), the dividend is expected to grow at a constant rate of 5.50% a year, and the common stock currently s
You are considering starting a walk-in-clinic. Your financial projections for the first year of operation are as follows: Revenues (10,000 visits) $400,000 Wages and benefits $220,
the managing directors of three profitable listed companies discussed their company''''s dividend policies. company A has deliberately paid no dividends for the past five years. co
R eceipt of bids and bid opening We discussed how to prepare the bids and to publish them in the earlier sub section. Now let us see how to receive and open bids. To receiv
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