buffytou
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A mutual fund invests in a variety of stocks. When the stocks go up, the fund makes money. When the stock has a dividend, the fund makes money. |
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Richard Jackel
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A mutual fund share has a certain value. This value is determined by the total value of the securites in the mutual fund portfolio. Lets say the funds value is $10.00 per share. If the fund offers to sell you a share for $9.90 called the Net Asset Value (NAV) the fund has made a profit of .10 cents. This is also called the management fee and its how the fund makes money for itself. If you wish to know more please send me an email. |
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Potto
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The mutual fund manager chooses a group of stocks, bonds, currencies and other investment tools, depending upon the level of risk they are willing to allow for the given fund. Then, they offer the fund to fund investors, who are able to by shares of the mutual fund. Each unit (let's say $100 for simplicity) is then divided up. That $100 is 100%, and each investment within the fund is allocated a certain percentage within the total fund. So, if 20% of the fund is US Gold Bullion, then $20 of your $100 is invested in US Gold Bullion.
If, at the point of your buy-in, the US Gold Bullion is valued at $800 per unit... and goes up to $850 by next year, then that portion of your mutual fund increases by 6.025% (850/800).
So, your $20 portion of gold increases to $21.205.
Hope that helps! |
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Brad
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You put money into a fund that a brokerage firm borrows to invest in stocks and bonds. The brokerage trades the stocks and bonds for a profit, and then the firm gives you a piece of the action for letting them borrow your money. |
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Pimpin John
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By buying small pieces of lots of companies. Some of these companies will loose money and not be able to provide a return on the investment, but others will do very well and share their profits with their investors. |
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radio80flyer
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Mutual funds by stocks which pay dividends, bonds which pay interest. There is also capital gains from the sale of these investments. |
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Teknoshamn
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Everyone that contributes to a particular mutual fund option essentially puts their money into a pool that is managed by someone who makes different investments with that pool of money on your behalf. That fund manager performs a certain level of due diligence (research and gathering statistics) before they make a decision to invest in any company; they also have control of how the fund is allocated to stocks, depending on what strategy they believe will produce the best possible returns.
Often, the funds are diversified across a broad range of industries, but there are other mutual fund options you can choose to invest in that have very specific investment focuses, like the Asian Growth Fund that invests in a range Asian companies through venture capitalism, which can be very risky (and is considered an aggressive investment option), but aslo has the potential to produce higher returns than more conservative fund options. |
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mylilbubbers
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Mutual funds invest in various stocks and industries. They make money when the companies they are investing in profit. |
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falcon
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Mutual funds are funds that contain many stocks. As those stocks go up or down, so does the fund. |
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willlbur
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Simply put, when you invest in a mutual fund, you are pooling your money with others for the fund company to invest. The fund that you buy will have an investment objective. That objective dictates how the fund manager will invest (small companies, international companies, real estate, etc). At the end of each day, the fund values all of the holdings in the fund and divides that total by the number of shares outstanding. That value is what each share is worth. As the holdings increase in value, your per share price will increase. |
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josyul026
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I had put huge money for over four years.
But like-other deposits you are not authorised to take any loan .
There is a risk involved , of course it is written in small letters.
No limit but your interest increases high, but there is risk.
I did managed & got huge money |
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src50
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See www.mfea.com. |
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▲ßûІІѕ vÅŸ ßèÄÅ—Ñ•â–¼
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it makes money when the fund managers know what they are doing investing in great companies. |
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Matt K
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By charging load fees and commissions everytime they execute a trade in the fund on your behalf. |
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