| money earned from a mutual fund investment |
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Elmira Nancy
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| money earned from a mutual fund investment |
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Hello I'm just starting out learning about investing and one of them is mutual fund. How do I get the money earned from mutual fund? Do I have to sell it just like a stock? or will the mutual fund company give it to me as cash or deposit to my bank account?
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Thu Dec 17, 2009 10:49 am |
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Office Space
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thanks for giving info but your kind information the real estate field is much better then the stocks and mutual funds. so for more security of your money so invest in real estate.
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Thu Dec 17, 2009 3:06 pm |
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coaster
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Two ways:
1) share price appreciation (you have to sell the shares)
2) distributions of dividends and capital gains (you can receive the distributions as cash, or you can use the distributions to buy more shares, known as "reinvestment")
~Tim~
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Thu Dec 17, 2009 3:38 pm |
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Raptor
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Mutual funds are tied directly to the stocks or assets in the mutual fund. As coaster stated if those stocks in the mutual fund pay a dividend then it will be paid to you as more shares of the mutual fund or cash, your choice. If the fund manager sells a stock and makes a capital gain, that is also paid to you, this is normally done once a year (the pay out of the multiple sales), also can generate a loss. ETFs are similar to mutual funds, except that the share price of the ETF is not tied directly to the stocks or assets; the ETF can trade at any price regardless of the value of the assets that it holds in the fund. Great if supply / demand is driving the price up, not so well in a volatile market.
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Thu Dec 17, 2009 6:08 pm |
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coaster
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I suppose this is as good a place as any to remind anyone reading this thread that many funds make their largest distributions at year-end. And also to remind shareholders that the NAV will decrease in the amount of the distribution. i.e., if a fund pays out 50 cents per share then the NAV of that fund (before adjusting for maket swings) will decrease 50 cents.
~Tim~
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Thu Dec 17, 2009 10:17 pm |
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david1987
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I think you could start it NANCY, because mutual fund or stock market are linked together. it will give you progress in the form of money.
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Sat Dec 19, 2009 1:07 pm |
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muaz alwi
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| Re: money earned from a mutual fund investment |
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quote:
Originally posted by Elmira Nancy
Hello I'm just starting out learning about investing and one of them is mutual fund. How do I get the money earned from mutual fund? Do I have to sell it just like a stock? or will the mutual fund company give it to me as cash or deposit to my bank account?
Essentially you need to sell likes a stock. If You want get your money better contact yur agent.Maybe they will advice you.If You want get your money,they all will prepare check to you around 2 weeks but Have a service charges. Mutual Fund is long term investment but its secure better than stocks.
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Mon Dec 21, 2009 3:08 pm |
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muaz alwi
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quote:
Originally posted by coaster
Two ways:
1) share price appreciation (you have to sell the shares)
2) distributions of dividends and capital gains (you can receive the distributions as cash, or you can use the distributions to buy more shares, known as "reinvestment")
Agree with your statement
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Mon Dec 21, 2009 3:09 pm |
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coaster
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| Re: money earned from a mutual fund investment |
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quote:
Originally posted by muaz alwi
Mutual Fund is long term investment but its secure better than stocks.
Since a mutual fund is made up of stocks, it can't be any more secure than stocks. Perhaps what muaz meant is that the risk of loss is less than any single stock. But you certainly do take a risk of loss in a stock mutual fund. Therefore it cannot be said to be secure. Of course, with the risk you also have the opportunity for higher returns.
~Tim~
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Mon Dec 21, 2009 4:17 pm |
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muaz alwi
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| Re: money earned from a mutual fund investment |
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quote:
Originally posted by coaster
quote:
Originally posted by muaz alwi
Mutual Fund is long term investment but its secure better than stocks.
Since a mutual fund is made up of stocks, it can't be any more secure than stocks. Perhaps what muaz meant is that the risk of loss is less than any single stock. But you certainly do take a risk of loss in a stock mutual fund. Therefore it cannot be said to be secure. Of course, with the risk you also have the opportunity for higher returns.
Sorry, maybe may be my statement little bit confuse.I dint mean 100% secure but still have risk. Any investment still have a risk but we can chose it.
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Tue Dec 22, 2009 6:17 am |
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David Devis
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yes mutual funds are safe then the stock market. it is secure investment.
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Thu Jan 07, 2010 12:59 pm |
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coaster
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quote:
Originally posted by David Devis
yes mutual funds are safe then the stock market. it is secure investment.
Please justify your statement by explaining how.
~Tim~
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Thu Jan 07, 2010 5:02 pm |
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David Devis
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quote:
Originally posted by coaster
quote:
Originally posted by David Devis
yes mutual funds are safe then the stock market. it is secure investment.
Please justify your statement by explaining how.
Here few of reasons which we consider mutual fund is safer than stock markets are below hope you will be satisfied.
The pool of money is invested in an array of different securities, depending on the specific mutual fund.
The fund may invest in stocks, bonds, money market accounts, futures, currencies, or even other mutual funds, targeting one area of the economy, or spread throughout.
Most mutual funds are administered by a fund manager who decides what and when to buy and sell.
As the fund earns money, you are get paid in periodic dividends, which you may choose either to keep or to reinvest into the fund.
Which money you invest in mutual funds are invests in different phases and different ways, some part of money goes in govt. security, some part in bonds and some part in stock market.
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Fri Jan 08, 2010 5:55 am |
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coaster
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In your previous post you used the words "safe" and "secure" -- those are absolutes. Using the word "safer" is a relative word. "Safer" may be true -- though I'd beg to differ as a blanket statement -- but "safe" surely is not. Any asset whose value can fluctuate cannot be said to be "safe" and "secure." And you cannot get the return without taking the risk, and the risk is not "safe" nor "secure".
The diversification you describe will create less volatility, yes, but usually at the cost of lower return.
~Tim~
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Fri Jan 08, 2010 7:36 am |
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