A mutual fund is a professionally managed type of collective
investment scheme that
pools money from many investors to buy stocks, bonds, short-term money
market instruments,
and/or other securities.
Friday, January 13, 2012
Hello Newbies in Investing
Any Idea about Bonds and Mutual Funds?
Mutual Funds
Well basically a mutual fund, is an investment way "that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets." Money Managers, who invest the funds capital and attempt to produce more capitals gains and income for the funds investors, operate mutual funds.
According to expert one of the main advantages of mutual funds is that they give small investors"access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital. they said that each share holder participates proportionally in the gain or loss of the funds.
Bonds
another form of investment are called bonds, it is called a debt investment which investors loans money to a corporate or government that borrow the funds for the defined period of time and fixed interest rate. Companies Municipalities, state and foreign governments use this kind of investment to finance a variety of projects and activities.
The Indebted entity or the issuer issues a bond that states the interest rate called coupon that will paid and when the loaned funds or the bond principal are to be returned maturity date. Interest on bonds usually paid every six months or semi annually. it is also referred to as fixed-income securities and are one of the main asset classes.
Mutual Funds
Well basically a mutual fund, is an investment way "that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets." Money Managers, who invest the funds capital and attempt to produce more capitals gains and income for the funds investors, operate mutual funds.
According to expert one of the main advantages of mutual funds is that they give small investors"access to professionally managed, diversified portfolios of equities, bonds and other securities, which would be quite difficult to create with a small amount of capital. they said that each share holder participates proportionally in the gain or loss of the funds.
Bonds
another form of investment are called bonds, it is called a debt investment which investors loans money to a corporate or government that borrow the funds for the defined period of time and fixed interest rate. Companies Municipalities, state and foreign governments use this kind of investment to finance a variety of projects and activities.
The Indebted entity or the issuer issues a bond that states the interest rate called coupon that will paid and when the loaned funds or the bond principal are to be returned maturity date. Interest on bonds usually paid every six months or semi annually. it is also referred to as fixed-income securities and are one of the main asset classes.
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