What exactly are Mutual Funds?

Canadian Mutual Funds Discussion
gonzo13
Posts: 23
Joined: Tue Jun 03, 2008 6:16 pm

What exactly are Mutual Funds?

Postby gonzo13 » Thu Jun 05, 2008 3:04 pm

Can somebody tell me what exactly are Mutual Funds and how do you make money when you invest in Mutual Funds?
Please help me out.

theway
Posts: 26
Joined: Tue Jun 03, 2008 6:33 pm

Re: What exactly are Mutual Funds?

Postby theway » Thu Jun 05, 2008 7:06 pm

Mutual funds are investment vehicles that pool money from many investors and invest the money in a variety of commodities, equities, bonds, and other securities. A mutual fund is usually managed by professionals, and investors are charged a variety of fees depending on the mutual fund.

gonzo13
Posts: 23
Joined: Tue Jun 03, 2008 6:16 pm

Re: What exactly are Mutual Funds?

Postby gonzo13 » Fri Jun 06, 2008 3:04 pm

Thanks for the reply. Do you think Mutual funds can make big return on your investment? Also who decides what stocks to be included in a Mutual Fund?

Sorry I have so many questions …

stocks
Posts: 16
Joined: Wed Jun 04, 2008 1:27 pm

Re: What exactly are Mutual Funds?

Postby stocks » Fri Jun 06, 2008 6:36 pm

gonzo13 wrote:Thanks for the reply. Do you think Mutual funds can make big return on your investment? Also who decides what stocks to be included in a Mutual Fund?

Sorry I have so many questions …


It depends on how do you define big return. The mutual fund manager(s) decide in which companies to invest, as they manage the mutual fund investment portfolio. There are many different types of mutual funds, depending on the fee they charge and the market sectors they invest in. Most big Canadian banks offer mutual funds, for example RBC Asset Management offers many mutual funds from very conservative/safe to very aggressive/risky.

rock
Posts: 20
Joined: Tue Jun 10, 2008 3:06 pm

Re: What exactly are Mutual Funds?

Postby rock » Tue Jun 10, 2008 3:50 pm

gonzo13 wrote:Do you think Mutual funds can make big return on your investment?


Of course you can make big returns with mutual fund, but you have to choose the right mutual fund. Finding the winners in any market is not an easy task, and as you know most people get it wrong, most of the time.


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