Download file to see previous pages...
Banks, share markets, mutual funds, insurance sector and real estate are some of the common investment areas normal investors are looking for. Bank investments are normally the best method of investment because of the less risk associated with it. Most of the banks have insurance protection for the investor’s money and hence it is safer than other types of investments. Bank deposits normally divided into two categories like savings account which yields less interests and term deposit which yields higher returns. Share market investment is the most risky investment option since the value of money undergoes immense fluctuation every day based on the changes in the share values. There is no protection for the investors in this sector as we have seen in the destruction of share values due to the current economic crisis. The main attraction of share market investment is the possibility of high yield in a short term. Real estate and investment also depends on the market conditions. Investment in insurance sector is also comparatively a safer method of investment though the return may not be as good as that from share market investment or mutual fund investment.
“Mutual funds can offer the advantages of diversification and professional management. But, as with other investment choices, investing in mutual funds involves risk. And fees and taxes will diminish a funds returns.” (Invest Wisely: An Introduction to Mutual Funds) Compared to share market investment, mutual fund investment is safer because of the professional management of our invested money. Share market investment is mostly controlled by the investor himself and hence the possibility of achieving a good return depends on the investor’s competence in analyzing the trends in stock market or company performances. On the other hand in mutual fund investment, the investor’s money is managed by fund managers. The mutual fund managers are highly skilled and they know better than us
...Download file to see next pagesRead More
Mutual Funds Introduction With the increasing risk of the financial markets brought on by the American recession and the European Sovereign Debt Crisis investors have increasingly looked to safe havens for their money. One of the most prominent and conservative means of investment diversification has been the mutual fund.
In order to make investments, first of all it is required to examine own risk profile in order to evaluate overall acceptance to take risk which is influenced by numerous factors such as current financial situation, personal needs and goals, time horizon, structure of my current investment, risk tolerance attitude, investment goals and objectives, liquidity, age and income and degree of familiarity with investment issues.
Money market mutual funds aim at limiting losses incurred because of market, liquidity, and credit risks. They preserve the principal in the investment and bring in modest dividends. Though there is fluctuation in the interest rates, the Net Asset Value of the funds remains at a $1 per share constant.
This involved investing in a number of assets from the top performing stocks in the market: SOHU.COM Inc, Packaging Corp of America, Intel Corporation, Yahoo Corporation, Cambrex Corp. Diversifying the investment was a strategy towards ensuring that I reduce the risk of investing in one stock which its failure in the market may have impacted my profitability.
There author has three main arguments against downsizing: one, because it is simply morally wrong to "harm some to benefit others"; two, because between workers and shareholders - workers are the vulnerable party on the principle of "legitimate or critical expectations"; and three, it is unfair for workers to be held responsible for something they don't have control over as when whole divisions are laid off when they don't meet the profit expectations of the management, and it also unfair for shareholders to gain benefit when stock prices soar after a firm downsizes because they not responsible for it.
Rather than benefiting in terms of a specific dividend payment or bond interest, the investors benefit by receiving a proportionate share of the mutual fund's investment return or suffer by absorbing a proportionate share of the mutual fund's investment loss.
Basically we define each of them so that understanding of the whole concept of mutual funds become much easier. So a stock represents shares of ownership in a public company. Few of the companies which can be called public companies are Accenture, IBM and Ford etc.
Hence, realization of need recognition has a greater value and importance in determining the type and size of investment. An investment can be made in any flowing business while keeping an eye on the return on investment and risk factor. Perhaps, mutual funds are the best choice in the modern era as they possess the correct measure of balance between return and risk factor while providing the benefits of diversification, professional management, liquidity, flexibility, convenience.
The recent performance of the firm indicates that it has been able to increase its revenue by 61% indicating a great increase in the revenue which is also manifested into the rise in the stock prices also. The current rise in the
2 Pages(500 words)Essay
GOT A TRICKY QUESTION? RECEIVE AN ANSWER FROM STUDENTS LIKE YOU!
Let us find you another Essay on topic Investing In mutual funds for FREE!