Fundamentals of fund management
Summary :
Table of Contents
- What is a fund management?
- Why choose funds?
- The context of investing
- Types of funds
- Stock funds
- Growth funds
- Growth income, equity income, and balanced funds
- Specialty and other types of funds
- Bond funds
- Corporate bond funds
- High yield bond funds
- Municipal bond funds
- Fund manager
- Equity
- Cap
- Small Cap
- Large Cap
- Mid-Cap fund
- Bibliography
Abstract
The easiest way to harness your savings to the stock market is through investing in a fund which pools your money with that of many thousands of other people. Investment funds are commercially run organizations, often owned by banks or insurance companies, which buy shares in bulk, collect the dividends on your behalf and keep track of your slice of ownership.
There are hundreds of different types, most using expensive City professionals to choose shares to buy and sell. Some called 'trackers' use a computer to mimic a particular index or benchmark such as the FTSE100 index of leading UK shares.
They do this by holding the same numbers of each share as the index they are tracking. Trackers are mostly the cheapest form of fund investment.
At one level, funds make investing simple. You do not have to even think about the complexities of investing, reading annual reports or understanding the jargon of companies and profits. That is the fund manager's job. Likewise, you are automatically protected against significant damage from bankruptcy or collapse of an individual firm, because every fund spreads its money over a fairly large number of different investments.
There are hundreds of different types, most using expensive City professionals to choose shares to buy and sell. Some called 'trackers' use a computer to mimic a particular index or benchmark such as the FTSE100 index of leading UK shares.
They do this by holding the same numbers of each share as the index they are tracking. Trackers are mostly the cheapest form of fund investment.
At one level, funds make investing simple. You do not have to even think about the complexities of investing, reading annual reports or understanding the jargon of companies and profits. That is the fund manager's job. Likewise, you are automatically protected against significant damage from bankruptcy or collapse of an individual firm, because every fund spreads its money over a fairly large number of different investments.
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