1 / 20

Mutual Funds

Mutual Funds. Chapter Playlist Songs: “Money” by Pink Floyd –Live 8 “Money” by pink Floyd” – original video. Mutual Fund Basics. Mutual fund: investment vehicle Fund manager: The person or people responsible for

onaona
Télécharger la présentation

Mutual Funds

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Mutual Funds Chapter Playlist Songs: “Money” by Pink Floyd –Live 8 “Money” by pink Floyd” – original video

  2. Mutual Fund Basics • Mutual fund: investment vehicle • Fund manager: Theperson or people responsible for • Closed-end mutual fund: A publicly traded mutual fund that raises capital • Open-end mutual fund: A mutual fund in which

  3. History of Mutual Funds • 1893 – (closed-end) Boston Property and Trust • 1929 – Stock • 1980s – Open-end mutual funds • 2009 – Median investment in mutual funds by household = • Mutual funds are regulated by the

  4. Costs and Fees of Mutual Funds • Front-end load: • Back-end load: • No-load mutual fund: • Net asset value (NAV): • Expense ratio:

  5. Characteristics of Mutual Fund Investors(May 2009)

  6. Types of Mutual Funds • Actively Managed Mutual Fund • Professional fund managers trying to maximize the return on the fund and finding assets that meet the fund’s objective • Index Market Funds • Not actively managed

  7. Types of Mutual Funds • Exchange-Traded Funds (ETFs) • Can be traded throughout the day on a stock exchange • Equity Mutual Funds • Stock mutual funds • Focus on a specific sector of the economy

  8. Total Net Assets and Number of ETFs

  9. Types of Mutual Funds • Bond Mutual Funds • Bond rating • Money Market Mutual Funds • Consists of short-term investments • Balanced Mutual Funds • Equity, bonds, and cash all in one fund

  10. Benefits of Mutual Funds (Figure 12.3)

  11. Dollar Cost Averaging vs. Continuous Automatic Investing • Specific dollar amount to be invested on a continual basis (e.g. $100/month) • No specified amount or end date • Specific dollar amount to invest (e.g.$10,000) • Divided into equal amounts over a specific time period (e.g. 10 months

  12. Risk of Mutual Funds • Only as secure as the assets they hold • Watch the turnover rate

  13. Costs and Classes of Mutual Funds • Fees • Front-end load (5%, would only have $95 of every $100 put into the fund) • Commissions • Share Classes • Class A, B, & C

  14. Choosing and Buying a Mutual Fund • Know your investment objective • Research the funds • Fund’s investment objective • Principal risks of investing • Past performance

  15. Choosing and Buying a Mutual Fund • If you feel uncomfortable managing your own investments, you might want to talk to a financial planner, financial adviser, stock broker, or local banker

  16. Asset Allocation Balanced Fund Samples

  17. Choosing and Buying a Mutual Fund • Open an account online with mutual find company • Look at requirements to open an account • Age • Discount broker • Scottrade, TD Ameritrade, e-Trade • Banks

  18. Popular Online References • Morningstar (www.morningstar.com) • Yahoo Finance (http://finance.yahoo.com/) • Google Finance (www.google.com/finance) • Value Line (http://www.valueline.com/) • Wall Street Journal (www.wsj.com) • MSN Money (www.money.msn.com) • CNN Money (http://money.cnn.com)

  19. Learn “A public-opinion poll is no substitute for thought.” ~Warren Buffet, Venture Capitalist (1930 -) • LO 12-1 Appreciate the history of mutual funds and understand mutual fund basics. • LO 12-2 Examine the types of mutual funds. • LO 12-3 Assess the benefits and risks of mutual funds. • LO 12-4 Evaluate mutual funds in terms of their class, commission, and fee structure. • LO 12-5 Plan how and where to invest in mutual funds.

More Related