Top Mutual Fund Questions for 2008

There are many frequent questions that are common about mutual funds. This is probably because mutual funds are so popular these days that many people are already investing in funds or are at least thinking about it. Below are some questions and answers:

What is Some of the History of Mutual Funds?

The Wellington Fund, made up of both stocks and bonds, was started in 1928. However, the Wellington Fund was preceded by investment trusts (which is what mutual funds are technically) all the way back to the early 1800s in the Netherlands. Other funds were started in the United States in the later 1800s.

Are IRAs the Same as Mutual Funds?

Many retirement accounts use mutual funds as their primary investment vehicle. IRAs were authorized in the United States in 1975 - IRA stands for Individual retirement Account. IRAs have led to explosive growth in mutual fund investing.

What Does No Load Mutual Fund Mean?

No load funds are mutual funds that don't impose a sales fee on the investor when they buy or sell the fund. A sales fee that is charged by the mutual fund company is called a "load".

Top Mutual Fund Questions Of 2008 - What Is A Mutual Fund?

A mutual fund is simply a financial intermediary that allows a group of investors to pool their money together with a predetermined investment objective. The mutual fund will have a fund manager who is responsible for investing the pooled money into specific securities. When you invest in a mutual fund, you are buying shares of the mutual fund and thus you become a shareholder of the fund.

What Is An Index Fund?

Most investors are probably best off in the long run buying an Index Fund. This type of fund tracks one of the stock market indexes, whether it is the Standard & Poor's 500 Stock Index, the entire stock market index, or some other performance measure of a like group of stocks.

What Is Net Asset Value?

For most of the funds, the NAV is determined daily, after the close of trading on some specified financial exchange, but some funds update their NAV multiple times during the trading day.

Top Mutual Fund Questions Of 2008 - What Is A Public Offering Price?

Closed-end funds may trade at a higher or lower price than their NAV; this is known as a premium or discount, respectively. If a fund is divided into multiple classes of shares, each class will typically have its own NAV, reflecting differences in fees and expenses paid by different classes. A Public Offering Price (POP) is nothing more than the net asset value plus a sales commission.

Article Source: http://www.myaddirectory.com

Discover much more about personal finance, wealth building, internet stock trading and investing at stock trading, a site with an abundance of knowledge about stock trading and wealth building.

If You want to use this article on your website then select COPY THIS ARTICLE in the Menu on the right side!

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated