How to Read a Mutual Fund Table

Columns 1 & 2: 52-Week High and Low – These show the highest and lowest prices the mutual fund has experienced over the previous 52 weeks (one year). This typically does not include the previous day’s price.
Column 3: Fund Name – This column lists the name of the mutual fund. The company that manages the [...]

Choosing a Mutual Fund

Buying and Selling
You can buy some mutual funds (no-load) by contacting the fund companies directly. Other funds are sold through brokers, banks, financial planners, or insurance agents. If you buy through a third party there is a good chance they’ll hit you with a sales charge.
That being said, more and more funds can be purchased [...]

Mutual Funds: The Costs

Costs are the biggest problem with mutual funds. These costs eat into your return, and they are the main reason why the majority of funds end up with sub-par performance.
What’s even more disturbing is the way the fund industry hides costs through a layer of financial complexity and jargon. Some critics of the industry say [...]

Disadvantages of Mutual Funds:

Professional Management – Many investors debate whether or not the socalled professionals are any better than you at picking stocks. Management is by no means infallible, and, even if the fund loses money, the manager still takes his/her cut.
Costs – Mutual funds don’t exist solely to make your life easier – all funds are in [...]

Risks

After a bond is issued, it may be traded. If a bond is traded before it matures, it may be worth more or less than the price paid for it. The price at which a bond trades can be affected by several types of risk.
Interest Rate Risk
When interest rates fall, a bond’s value usually rises. [...]

Bond Funds

Bond funds invest primarily in securities known as bonds. A bond is a type of security that resembles a loan. When a bond is purchased, money is lent to the company, municipality, or government agency that issued the bond. In exchange for the use of this money, the issuer promises to repay the amount loaned [...]

Stock Funds

Stock funds invest primarily in stocks. A share of stock represents a unit of ownership in a company. If a company is successful, shareholders can profi t in two ways: the stock may increase in value, or the company can pass its profi ts to shareholders in the form of dividends. If a company fails, [...]

Advantages of Investing in Mutual Fund?

Mutual funds make saving and investing simple, accessible, and affordable. The advantages of mutual funds include professional management, diversification, variety, liquidity, affordability, convenience, and ease of record-keeping—as well as strict government regulation and full disclosure.
Funds Management
Even under the best of market conditions, it takes an astute, experienced investor to choose investments correctly, and a further [...]

Types of Mutual Funds
There are three basic types of mutual funds—stock (also called equity), bond, and money market. Stock mutual funds invest primarily in shares of stock issued by Indian or foreign companies. Bond mutual funds invest primarily in bonds. Money market mutual funds invest mainly in short-term securities.
Money Market Funds
The money market consists of [...]

Introduction

A mutual fund is a company that invests in a diversified portfolio of securities. People who buy shares of a mutual fund are its owners or shareholders. Their investments provide the money for a mutual fund to buy securities such as stocks and bonds. A mutual fund can make money from its securities in two [...]