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Q. > Please Help: Mutual Fund and Stock Market
What is basic meaning of Mutual Funds??
In stock market often Serkit word is used. . what it mean?? Uper level and lower level are also used. .
wt it mean??
answered Jan 19, 2012 by PRIYANKA , GREATER NOIDA
Well I can tell u something about Mutual funds..dont know about the others...Mutual fund is a fund, managed by an investment company with the financial objective of generating high Rate of Returns. These asset management or investment management companies collects money from the investors and invests those money in different Stocks, Bonds and other financial securities in a diversified manner. Before investing they carry out thorough research and detailed analysis on the market conditions and market trends of stock and bond prices. These things help the fund mangers to speculate properly in the right direction.
The investors who invest their money in the Mutual fund of any Investment Management Company, receive an Equity Position in that particular mutual fund. When after certain period of time, whether long term or short term, the investors sell the Shares of the Mutual Fund, they receive the return according to the market conditions.
The investment companies receive profit by allocating people's money in different stocks and bonds according to their Speculation about the Market Trend.
Other than some specific mutual funds which carry certain Maturity Term, Investors can generally sell the shares of their mutual funds at any time they want. But, the return will vary according to market value of the stocks and bonds in which that particular mutual fund made investment.But, generally the share holders of mutual fund sell their share when the prices are up and Capital Gain is sure to happen.
answered Feb 20, 2012 by Mrattunjay , New Delhi
Yes, please refer priyanka answer and refer stock exchange website
Experts Panelist
Comments
lavina bajaj
19-Jan-2012 , 03:38:41 pmas the word suggests mutual means common...thus, mutual fund is the intermediator between small investors and companies... basically small household investors have funds but they doesnt have knowledge to invest them and companies those are in need of funds. thus mutual fund company takes money from investors and lends them to companies who need them.. thus in this way investors get returns on their investments and companies can fulfil their funding needs...
Ajay kumar Dadhich
19-Jan-2012 , 10:24:00 pmAjay kumar Dadhich
19-Jan-2012 , 10:31:54 pmHi Hardik The first part on Mutual fund is rightly answered by Lavina and Priyanka. In the context of stock markets, circuit is the price limit or range, outside which the stock price can't go. For example, let's say closing price of X stock yesterday was 100 Rs. The applicable circuit limit for X is 5%. In this circumstances, the price of X can't go above 105 (5% above previous close) and below 95 (5% below previous close). Please note that this limit is different for different stocks. For some stocks, the limit may be 5%, while for some stocks, it may be 10% or 20% also. For a newly listed company also, there is a circuit limit of 20% from its issue price. Hope it is clear now
Hardik Thakkar
11-Apr-2012 , 07:17:47 pmThanks every one . . .