Question

What features of mutual funds and the investment environment have led to mutual funds rapid growth...

What features of mutual funds and the investment environment have led to mutual funds rapid growth in the last two decades?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

The features are listed as follows:

  • Mutual Funds are an indirect investment into markets. Thus, the common person can invest easily. The risk is professionally managed.
  • Mutual Funds offer a variety of schemes as per the requirements of the person. Enhanced flexibility has increased investor participation.
  • Companies have provided a conducive investment environment by making people aware of these investment opportunities.
  • Cost of investing in mutual funds is low, which has prompted investors to invest more.
  • Mutual Funds offer liquidity to investors too. They can diversify their portfolio by investing in different products.
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
What are the features of a collective investment schemes. (like unit trust and mutual fund)
What are the features of a collective investment schemes. (like unit trust and mutual fund)
What are the general purposes of using mutual funds in individual investment portfolios?
What are the general purposes of using mutual funds in individual investment portfolios?
1. What are examples of investment companies? Check all that apply: Closed-end funds Mutual funds Exchange-traded...
1. What are examples of investment companies? Check all that apply: Closed-end funds Mutual funds Exchange-traded funds Investment banks 2. Which functions do investment companies perform for their investors? Check all that apply: Investment advice Lower transaction costs Asset management Record keeping Diversification and divisibility 3. A back-end load is _____. a redemption or "exit" fee incurred when you sell your shares a commission or sales charge paid when you purchase the shares the cost incurred by the mutual fund...
You are considering two mutual funds as an investment. The possible returns for the funds are...
You are considering two mutual funds as an investment. The possible returns for the funds are dependent on the state of the economy and are given in the accompanying table. State of the Economy Fund 1 Fund 2 Good 42 % 42 % Fair 13 % 15 % Poor −7 % −17 % You believe that the likelihood is 14% that the economy will be good, 56% that it will be fair, and 30% that it will be poor. a....
Mutual funds are classified as load or no-load funds. Load funds require an investor to pay...
Mutual funds are classified as load or no-load funds. Load funds require an investor to pay an initial fee based on a percentage of the amount invested in the fund. The no-load funds do not require this initial fee. Some financial advisors argue that the load mutual funds may be worth the extra fee because these funds provide a higher mean rate of return than the no-load mutual funds. A sample of 30 load mutual funds and a sample of...
What contract feature of a mutual fund investment makes it far less likely that funds suffer...
What contract feature of a mutual fund investment makes it far less likely that funds suffer "runs" like bank deposits did before the creation of the FDIC? a. The stock market is inherently more stable than bank deposits. b. Mutual fund companies must inject additional funds to keep investors' balances above par. c. Mutual fund investments are values on a proportional basis (net asset value per share), while bank deposits are a sequential claim contract. d. Risk tolerances are higher...
Which is a difference between mutual funds and Unit Investment Trusts? UITs have a maturity date...
Which is a difference between mutual funds and Unit Investment Trusts? UITs have a maturity date UITs have to pay taxes UITs have to diversify All of the above are differences ______________ are often paid out as commissions to brokers who sell funds to their clients. 12 b-1 fees Front-end Loads Public Offering Prices Redemption charges The ____________ may allow investors to use investments in all of a family’s funds in order to get a lower load. Combination Privilege Conversion...
What are the differences between Hedge Funds and Mutual Funds? Specify the differences with respect to...
What are the differences between Hedge Funds and Mutual Funds? Specify the differences with respect to each of these four areas:             A) Investors             B) Regulation             C) Fees for managers             D) Risks and Investment Strategies
What information are mutual funds required to report to investors? How much of the funds’ earnings...
What information are mutual funds required to report to investors? How much of the funds’ earnings must be distributed to investors in order to qualify as an investment fund? What is a factor? What service do they provide?
What are some of the similarities and differences among mutual​ funds, pension​ funds, and hedge​ funds?...
What are some of the similarities and differences among mutual​ funds, pension​ funds, and hedge​ funds? ​(Select all the choices that​ apply.) A. Mutual​ funds, pension funds and hedge funds are all financial institutions involved with helping savers and investors reach their financial goals. B. Unlike mutual funds and pension funds which serve investors of all​ means, hedge funds are primarily designed for wealthy investors and endowments. C. Pension​ funds, which are similar to mutual funds in that they buy​...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT