FIN1010 Exercises Module 7 ew the video \"Introduction to Financial Securities:
ID: 2800163 • Letter: F
Question
FIN1010 Exercises Module 7 ew the video "Introduction to Financial Securities: How Mutual Funds Work." According to the speaker, are no-load funds free? Should you buy mutual funds near the end of a year? Also check out the tools and information available at Yahoo! Finance at http://finance.yahoo.com/funds, regarding mutual funds. According to both this source and the video, what are the two key benefits of mutual funds? How are mutual funds classified (what is a category)? How can you gauge the performance of a mutual fund? What are the costs of owning mutual funds? Where can you get information about a mutual fund? What does a fund screener allow you to do? Read Investopedia's article on investing in gold and silverExplanation / Answer
NO LOAD FUNDS
NO LOAD FUNDS ARE THE MUTUAL FUNDS IN WHICH SHARES ARE SOLD WITHOUT COMISSION OR SALES CHARGE.
YEAR END PURCHASE
IF SOMEONE PLANS TO PURCHASE A FUND ON A PERIOD NEAR TO THE YEAR END THEN HE MAY BE LIABLE TO PAY TAXES ON GAINS WHICH HE DID NOT EARN.
CLASSIFICATION OF MUTUAL FUNDS
PERFOMANCE GAUGE OF MUTUAL FUNDS
THE PERFORMANCE OF ANY INVESTMENT S MEASURED OVER A GIVEN PERIOD OF TIME , IS SIMPLY THE SUM OF CAPITAL APPRECIATION AND GENERATED INCOME, DIVIDED BY ORIGINAL AMOUNT OF INVESTMENT, EXPRESSED AS PERCENTAGE.
MUTUAL FUNDS COSTS
THE COST INVOLVED WITH MUTUAL FUNDS ARE NOT ALWAYS STRAIGHT FORWARD. IT IS BROADLY DIVIDED INTO 2 CATEGORIES
EXPENSE RATIO
ONGOING EXPENSE IS OFTEN EXPRESSED BY EXPENSE RATIO
HIRING COST
ALSO KNOWN AS MANAGEMENT FEE
DISTRIBUTON AND SERVICE FEE
ALSO KNOWN AS 12b-1 FEE
ACCOUNT FEE
LOADS
LOADS ARE EQUIVALENT TO SALES COMMISSION
SALES LOAD
REDEMPTION FEE
FUND SCREENER
A FUND SCREENER PROVEIDES ALL THE NECESSARY DATA AND INFORMATION REGARDING THE MUTUAL FUND INCLUDING ASSET TYPE, LIPPER CATEGORY, PERFORMANCE DATA, FEES AND EXPENSES, OPERATIONS, RISK ETC
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