Inner Peace: This is so true
If you can start the day without caffeine,
If you can always be cheerful, ignoring aches and pains,
If you can resist complaining and boring people with your troubles,
If you can eat the same food every day and be grateful for it,
If you can understand when your loved ones are too busy to give you any time,
If you can take criticism and blame without resentment ,
If you can conquer tension without medical help,
If you can relax without liquor,
If you can sleep without the aid of drugs,
...Then You Are Probably .........
The Family Dog!
Monday, February 7, 2011
Sunday, February 6, 2011
What Is a Mutual Fund?
What Is a Mutual Fund?
Mutual funds are investment companies that pool your money with that of other investors to buy stocks, bonds or other securities. The managers of the mutual fund use the pooled funds to buy investments that match your goals. The fund manager determines which investments to buy for the fund, and keeps track of the value of the mutual fund. When you own shares in a mutual fund, you own part of a basket of securities. The more stocks you own, the lower your financial risk if one company fails. By owning shares in a mutual fund, you diversify your investment and reduce your risk.
The Advantages of a Mutual Fund
Mutual funds make investing easier. That's the main advantage of mutual funds. Investing is difficult when you try to pick stocks on your own. You need time, training, and up-to-date information. The amount of financial news and advice is confusing. In order to diversify your investment, it takes a lot of capital to buy a variety of stocks. Mutual funds make it easier to own a diversified group of stocks. For these four reasons, mutual funds are an excellent way to invest for the average investor planning for retirement, college or other financial goals.
Despite periodic fluctuations, an investment in the stock market over the long-term pays you better than your savings account, Certificates of Deposit, U.S. Treasury bills, notes and bonds, or money market accounts.
An Index Fund Is a Mutual Fund
An Index Fund is a mutual fund that will match the investment performance of a major stock market index, like the S&P500, the Dow, the Russell 5000 and the NASDAQ 100. The Index Fund owns a basket of stocks that precisely match the stocks in the index. An S&P500 Index Fund will own the securities, and possibly index futures, to match the performance of the S&P500 Stock Index. When you own an index fund, your investment will perform as well as the index, no better and no worse. The fees to manage an index fund are lower than other mutual funds because an index fund is a passive fund which needs little management. A new investor is often well-advised to buy shares in an index fund. Vanguard, a well-known investment firm, manages many index funds.
How to Compare Mutual Funds
To compare two mutual funds, look at how much the fund earns each year. Do not compare mutual funds on the basis of the share prices, because prices depend on how many shares are outstanding. All mutual funds must report their average annual compounded rates of return for 1-year, 5-year and 10-year periods. This is called the average annual total return for the fund.
There is some concern that professional mutual fund managers do not outperform Index Funds and do not outperform other investors. The Wall Street Journal reports that separately managed accounts did better than mutual funds in 22 of 25 categories from 2006 to 2008. Morningstar, Inc said that separately managed accounts outperformed mutual funds in 25 of 36 stock and bond market categories.
Mutual Funds Are Classified by Their Investments
Mutual funds are classified by the type of investment securities they hold. The most common securities purchased by a mutual fund are money market instruments, stocks, bonds, or shares of other mutual funds. For example, a stock mutual fund holds stocks. Some mutual funds invest in more exotic instruments such as senior loans and derivatives like forwards, futures, options and swaps. A mutual fund can invest in United States securities or international securities. The prospectus of the mutual fund will explain its investment policy.
Mutual funds that invest in bonds are called bond funds. Your earnings and the risk you carry are determined by what type of bonds the fund holds. They might hold high-yield junk bonds or investment-grade corporate bonds. They could invest in the bonds of government agencies, corporations, or municipal bonds. They can hold bonds with a short-term or long-term maturity.
Mutual Funds Are Classified by Their Objectives
Mutual funds are also classified by their investment objective or focus of interest. You'll find mutual funds for capital appreciation, growth, capital preservation, large-cap, mid-cap, small-cap, emerging growth and international investment. Growth funds invest in the stocks of companies that have the potential for large capital gains. Value funds look for stocks that are undervalued. Some mutual funds invest in a particular industry or sector of the economy, like a technology fund, or a gold fund. Look at the current fund portfolio to see if its investments are right for you.
Whether actively managed or passively indexed, mutual funds have risks. If the fund invests primarily in stocks, it is usually subject to the same ups and downs and risks as the stock market as a whole.
How Mutual Funds Are Organized
Mutual funds are organized as either open-end funds or closed-end funds. Most mutual funds are open-end funds. These funds issue new shares and redeem shares every day. They have no limit on the amount of shares in the fund or the size of the fund. An open-end fund continues to grow by attracting more investor capital. An open-end mutual fund is the best choice for most investors.
Closed-end mutual funds are organized with a fixed number of shares. Their shares trade on a stock exchange, where you can buy them. The trading price of the shares does not always reflect the value of the assets it owns.
How to Buy Shares of a Mutual Fund
You can buy shares in a mutual fund by contacting the fund online or through a stock broker. There are many investment companies that each offer a family of mutual funds. Some of these companies are American Century, Dreyfus, Fidelity, Franklin Templeton, Goldman Sachs, Invesco, Janus, TIAA-CREF, T. Rowe Price, and Vanguard. You can contact them individually for a fund prospectus and account application. Brokers like Schwab, TD Ameritrade and E-Trade also sell shares in mutual funds.
An Exchange Traded Fund Is a New Type of Mutual Fund
An Exchange Traded Fund, ETF, is a mutual fund. Its shares trade on a stock exchange at prices that do reflect the value of its assets. Most ETFs track stock indexes like the S&P500. ETFs are more efficient than traditional mutual funds. They have lower expenses because the fund does not have to buy and sell additional securities for the fund. Here is more information on ETFs.
A Unit Investment Trust Is Different from a Mutual Fund
Unit Investment Trusts are trusts, not mutual funds. The Unit Investment Trust issues an undivided interest in specific securities. The shares of a Unit Investment Trust are not an interest in a basket of investments, but in a specific asset. A real estate trust is an example of a Unit Investment Trust.
A Hedge Fund Is Not a Regulated Mutual Fund
A hedge fund is not a regulated mutual fund. Hedge funds are private pooled investment funds. A hedge fund seeks high returns by taking more risk and may also borrow more money to invest. Hedge funds often charge a management fee of 1% or more, plus a performance fee of 20% of the hedge fund's profit.
http://www.surfersam.com/articles/what-is-a-mutual-fund.htm
Mutual funds are investment companies that pool your money with that of other investors to buy stocks, bonds or other securities. The managers of the mutual fund use the pooled funds to buy investments that match your goals. The fund manager determines which investments to buy for the fund, and keeps track of the value of the mutual fund. When you own shares in a mutual fund, you own part of a basket of securities. The more stocks you own, the lower your financial risk if one company fails. By owning shares in a mutual fund, you diversify your investment and reduce your risk.
The Advantages of a Mutual Fund
Mutual funds make investing easier. That's the main advantage of mutual funds. Investing is difficult when you try to pick stocks on your own. You need time, training, and up-to-date information. The amount of financial news and advice is confusing. In order to diversify your investment, it takes a lot of capital to buy a variety of stocks. Mutual funds make it easier to own a diversified group of stocks. For these four reasons, mutual funds are an excellent way to invest for the average investor planning for retirement, college or other financial goals.
Despite periodic fluctuations, an investment in the stock market over the long-term pays you better than your savings account, Certificates of Deposit, U.S. Treasury bills, notes and bonds, or money market accounts.
An Index Fund Is a Mutual Fund
An Index Fund is a mutual fund that will match the investment performance of a major stock market index, like the S&P500, the Dow, the Russell 5000 and the NASDAQ 100. The Index Fund owns a basket of stocks that precisely match the stocks in the index. An S&P500 Index Fund will own the securities, and possibly index futures, to match the performance of the S&P500 Stock Index. When you own an index fund, your investment will perform as well as the index, no better and no worse. The fees to manage an index fund are lower than other mutual funds because an index fund is a passive fund which needs little management. A new investor is often well-advised to buy shares in an index fund. Vanguard, a well-known investment firm, manages many index funds.
How to Compare Mutual Funds
To compare two mutual funds, look at how much the fund earns each year. Do not compare mutual funds on the basis of the share prices, because prices depend on how many shares are outstanding. All mutual funds must report their average annual compounded rates of return for 1-year, 5-year and 10-year periods. This is called the average annual total return for the fund.
There is some concern that professional mutual fund managers do not outperform Index Funds and do not outperform other investors. The Wall Street Journal reports that separately managed accounts did better than mutual funds in 22 of 25 categories from 2006 to 2008. Morningstar, Inc said that separately managed accounts outperformed mutual funds in 25 of 36 stock and bond market categories.
Mutual Funds Are Classified by Their Investments
Mutual funds are classified by the type of investment securities they hold. The most common securities purchased by a mutual fund are money market instruments, stocks, bonds, or shares of other mutual funds. For example, a stock mutual fund holds stocks. Some mutual funds invest in more exotic instruments such as senior loans and derivatives like forwards, futures, options and swaps. A mutual fund can invest in United States securities or international securities. The prospectus of the mutual fund will explain its investment policy.
Mutual funds that invest in bonds are called bond funds. Your earnings and the risk you carry are determined by what type of bonds the fund holds. They might hold high-yield junk bonds or investment-grade corporate bonds. They could invest in the bonds of government agencies, corporations, or municipal bonds. They can hold bonds with a short-term or long-term maturity.
Mutual Funds Are Classified by Their Objectives
Mutual funds are also classified by their investment objective or focus of interest. You'll find mutual funds for capital appreciation, growth, capital preservation, large-cap, mid-cap, small-cap, emerging growth and international investment. Growth funds invest in the stocks of companies that have the potential for large capital gains. Value funds look for stocks that are undervalued. Some mutual funds invest in a particular industry or sector of the economy, like a technology fund, or a gold fund. Look at the current fund portfolio to see if its investments are right for you.
Whether actively managed or passively indexed, mutual funds have risks. If the fund invests primarily in stocks, it is usually subject to the same ups and downs and risks as the stock market as a whole.
How Mutual Funds Are Organized
Mutual funds are organized as either open-end funds or closed-end funds. Most mutual funds are open-end funds. These funds issue new shares and redeem shares every day. They have no limit on the amount of shares in the fund or the size of the fund. An open-end fund continues to grow by attracting more investor capital. An open-end mutual fund is the best choice for most investors.
Closed-end mutual funds are organized with a fixed number of shares. Their shares trade on a stock exchange, where you can buy them. The trading price of the shares does not always reflect the value of the assets it owns.
How to Buy Shares of a Mutual Fund
You can buy shares in a mutual fund by contacting the fund online or through a stock broker. There are many investment companies that each offer a family of mutual funds. Some of these companies are American Century, Dreyfus, Fidelity, Franklin Templeton, Goldman Sachs, Invesco, Janus, TIAA-CREF, T. Rowe Price, and Vanguard. You can contact them individually for a fund prospectus and account application. Brokers like Schwab, TD Ameritrade and E-Trade also sell shares in mutual funds.
An Exchange Traded Fund Is a New Type of Mutual Fund
An Exchange Traded Fund, ETF, is a mutual fund. Its shares trade on a stock exchange at prices that do reflect the value of its assets. Most ETFs track stock indexes like the S&P500. ETFs are more efficient than traditional mutual funds. They have lower expenses because the fund does not have to buy and sell additional securities for the fund. Here is more information on ETFs.
A Unit Investment Trust Is Different from a Mutual Fund
Unit Investment Trusts are trusts, not mutual funds. The Unit Investment Trust issues an undivided interest in specific securities. The shares of a Unit Investment Trust are not an interest in a basket of investments, but in a specific asset. A real estate trust is an example of a Unit Investment Trust.
A Hedge Fund Is Not a Regulated Mutual Fund
A hedge fund is not a regulated mutual fund. Hedge funds are private pooled investment funds. A hedge fund seeks high returns by taking more risk and may also borrow more money to invest. Hedge funds often charge a management fee of 1% or more, plus a performance fee of 20% of the hedge fund's profit.
http://www.surfersam.com/articles/what-is-a-mutual-fund.htm
Tech gadgets
Scarpar tests - cable version
http://www.youtube.com/watch?v=B7dE3SMKgQs&feature=player_embedded
xBlocks at Salone
http://www.youtube.com/watch?v=NBfosJiDocM&feature=player_embedded
Touchscreen Computer Display Floats in Mid-Air
http://www.youtube.com/watch?v=XOSx7v87JCA&feature=player_embedded
http://www.youtube.com/watch?v=B7dE3SMKgQs&feature=player_embedded
xBlocks at Salone
http://www.youtube.com/watch?v=NBfosJiDocM&feature=player_embedded
Touchscreen Computer Display Floats in Mid-Air
http://www.youtube.com/watch?v=XOSx7v87JCA&feature=player_embedded
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