Mutual Funds. Goal Diversification Professional Money Management Easy Time and Energy Saver Higher returns than if you ‘do it yourself’

Slides:

Advertisements

Similar presentations

Chapter 8 Investment Co. indirect investment types fees objectives regulation ETFs indirect investment types fees objectives regulation ETFs.

Advertisements

CHAPTER 4: INVESTMENT COMPANIES.  Definition: financial intermediaries that collect funds from individual investors and invest those funds in a potentially.

An Introduction to Investing Fin 302 Spring 2008 James Dow.

Chapter 16 Investing in Mutual Funds

McGraw-Hill/Irwin © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.

1 Mutual Funds Diversified portfolio of stocks, bonds or other securities run by a professional manager –$ 7.9 trillion in assets; 8,300 different funds.

1 1 Ch4 – MBA 567 Mutual Funds and Investment Companies Services of Investment Companies Types of Investment Companies Types of Mutual Funds Cost of Mutual.

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.

© 2008 Thomson South-Western CHAPTER 13 INVESTING IN MUTUAL FUNDS.

1 Chapter 15 – Mutual Funds Pool money from investors with similar objectives and purchase a diversified portfolio run by a professional manager –Shares.

McGraw-Hill/Irwin Copyright © 2008 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.

Mutual Funds and Other Investment Companies Chapter 4.

1 Mutual Funds Diversified portfolio of stocks, bonds or other securities run by a professional manager –$ 7.5 trillion in assets; 8,100+ different funds.

Mutual Funds Financial Literacy. 2 What We Will Cover What is a Mutual Fund? Advantages and Disadvantage of Mutual Funds Costs of Mutual Funds Types of.

© 2011 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part.

 2004 McGraw-Hill Ryerson Ltd. Kapoor Dlabay Hughes Ahmad Prepared by Cyndi Hornby, Fanshawe College Chapter 13 Investing in Mutual Funds 13-1.

Stock Mutual Funds for Long Term Goals Financial Planning for Women Jean Lown, FCHD Dept., USU PowerPoint by Tiffany Smith Students from the Advanced Family.

An Introduction to Mutual Funds

Mutual Funds Financial Literacy.

Vicentiu Covrig 1 Mutual funds Mutual funds. Vicentiu Covrig 2 Diversification Professional management Low capital requirement Reduced transaction costs.

Prentice-Hall, Inc.1 Chapter 15 Mutual Funds: An Easy Way to Diversify.

Investment Companies  What are they?  Financial intermediaries that invest the funds of individual investors in securities or other assets.

© 2013 Pearson Education, Inc. All rights reserved.15-1 Chapter 15 Mutual Funds: An Easy Way to Diversify.

13-1. McGraw-Hill/Irwin Copyright © 2006 The McGraw-Hill Companies, Inc. All rights reserved. 13 Investing in Mutual Funds.

LESSON 14.1 Investing in Mutual Funds. Mutual Funds What is a Mutual Fund?  Professionally managed group of investments bought using a pool of money.

Chapter 16 Investing in Mutual Funds McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc. All rights reserved.

What is a Mutual Fund? More Americans invest in stocks and bonds through mutual funds than in any other way. Mutual funds are an investment alternative.

Investing in Mutual Funds Chapter 14 Goals for Chapter 14.1  Explain why people invest in mutual funds and the types of mutual funds available for investing.

Mutual Funds. Defined A mutual fund is a collection of stocks that a group of investors pool their money together to invest in.

Copyright  2002 by Harcourt, Inc. All rights reserved. CHAPTER 13: INVESTING IN MUTUAL FUNDS Clip Art  2001 Microsoft Corporation. All rights reserved.

Learning Objective # 1 Describe the characteristics of mutual funds. LO#1.

Mike Mercado.  Review  Breakdown of Funds  Family of Funds  Share Classes  Fees & Expenses  Top 10 Mutual Funds  Mutual Fund Scenario  Questions.

Chapter 20 Mutual Funds and Asset Allocation Lawrence J. Gitman Jeff Madura Introduction to Finance.

4-1 Mutual Funds 1980, 5 million Americans owned mutual funds. Today over 100 million Americans in 55 million households owned mutual funds. In November.

Seminar Number Understanding the Lingo of Mutual Funds Presenters Name.

Mutual Funds. Objectives WHAT IS A MUTUAL FUND? HOW DO MUTUAL FUNDS OPERATE? HOW MUCH DOES MUTUAL FUND INVESTING COST? HOW SHOULD MUTUAL FUND PERFORMANCE.

MUTUAL FUNDS Investments Some Advantages to a Mutual Fund Reduce transaction costs for investors Shares can be purchased in small amounts Reduce.

Mutual Funds (page 76 through 85) ACE 444. Mutual Funds (Net Asset Value) Mutual fund has 10 million shares $215 million of market valuation value (end.

Index or Managed Fund Presentation by Kerri Mills 9/10/2002.

PROFESSIONAL ASSET MANAGEMENT. Basic Categories Private Management: Clients each have a separate account {popular with institutions} Investor 1 Investor.

1 Personal Financial Planning Guide Chapter 3-6: Building Wealth through Investment Planning.

What is a mutual fund?  A pool of money that is invested in different securities (stocks, bonds, etc)  The money pool is invested on the investors behalf.

Joan Koonce, Ph.D., AFC® Extension Financial Planning Specialist

INVESTMENTS Lecture 11 Investment Companies and ETFs.

Chapter 4 Mutual Funds and Other Investment Companies.

Investment Companies  Net Asset Value (NAV)  (Total portfolio value - liabilities) / # of shares  Management is usually contracted to an outside firm.

McGraw-Hill/Irwin © 2007 The McGraw-Hill Companies, Inc., All Rights Reserved. Mutual Funds and Other Investment Companies CHAPTER 4.

PROFESSIONAL ASSET MANAGEMENT 1. Basic Categories Private Management: Clients each have a separate account {popular with institutions} Investor 1 Investor.

Mutual Funds and Other Investment Companies

Chapter 15: Investing Through Mutual Funds. Objectives Identify why people invest in mutual funds. Distinguish among the four major objectives of mutual.

Investing In Your Future © Thomson/South-Western ChapterChapter MUTUAL INTERESTS MUTUAL FUNDS 6.2 INVESTIGATE MUTUAL FUNDS 6.3 CHOOSE MUTUAL FUNDS.

Contemporary Investments: Chapter 4 Chapter 4 MUTUAL FUNDS What is a mutual fund and how do mutual funds operate? How much does mutual fund investing cost?

Brokers versus Mutual Funds n Objective: –Characteristics of a mutual fund. –Different players and roles in the buying and selling process. –Future of.

Mutual funds have historically offered safety and diversification. And they spare you the responsibility of picking individual stocks. Ron Chernow.

INVESTMENTS | BODIE, KANE, MARCUS Copyright © 2011 by The McGraw-Hill Companies, Inc. All rights reserved. McGraw-Hill/Irwin CHAPTER 4 Mutual Funds and.

Chapter © 2010 South-Western, Cengage Learning Investing in Mutual Funds, Real Estate, and Other Choices Investing in Mutual Funds 14.

Saving & Investing Mutual Funds.  What are they?  How do they work? individuals buy shares, and the fund uses money to purchase stocks, bonds, and other.

Chapter 11 Investment Companies. Closed-end Open-end (commonly called a mutual fund)

Mutual funds (see Ch. 16 Hirschey and Nofsinger)

Mutual Funds: An Easy Way to Diversify Professor Payne, Finance 4100

What is a mutual fund? Investment company that collects money from many people and invests that money in a variety of securities (investments) A fund manager.

Mutual Funds and Other Investment Companies

Personal Finance Mutual Funds

Mutual Funds Financial Literacy.

Investing Through Mutual Funds

20 Mutual Funds and Asset Allocation Introduction to Finance Chapter

Mutual Funds and Other Investment Companies

Chapter 16: Investing Through Mutual Funds

MUTUAL INTERESTS MUTUAL FUNDS 3.2 INVESTIGATE MUTUAL FUNDS

Presentation transcript:

Mutual Funds

Goal Diversification Professional Money Management Easy Time and Energy Saver Higher returns than if you ‘do it yourself’

Structure Money from individuals is pooled by a fund management company (Vanguard / Fidelity). Fund Manager (Advisor) buys and sells stocks or bonds with the pooled funds. Individual investors benefit from diversification with little investment.

Key Metrics Net Asset Value (NAV) –A ‘per share’ measurement of the total value of the assets held by the mutual fund Performance –Percentage gain in fund value over a specified time period (annually, quarterly, etc.)

Fees Load (Sales fees) 12(b)-1 fees (marketing fees) Management fees

Taxes Till death do us part….

Mutual Funds Categories Growth Aggressive Growth Value Income Equity-Income Bond Asset Allocation Balanced Growth and Income Sector Index Conscience (Socially Responsible

If You Can’t Beat ‘em Join ‘em Index funds historically out-perform actively-managed mutual funds Lower fees Lower taxes More sleep at night…

Tools Morningstar (the king) Matching funds to your objectives Portfolios constructed entirely with funds Diversification by buying funds that balance each other

Let’s Take a Closer Look