But also puzzling some investors is whether they should invest in an ETF if they already own a similar index-tracking mutual fund
The recent mutual fund
trading scandals, however, have changed that perception.
When choosing mutual fund
investments, investors must consider the fund's tax efficiency ha view of their particular tax situation.
The scandal has spread like a virus across the $7 trillion mutual fund
industry, with many of the big mutual fund
companies coming under scrutiny.
Many mutual fund
prospectuses contain specific references to market timing, state that the fund's policy is to discourage the practice, and explain how it intends to implement that policy.
On October 30, the House Financial Services Capital Markets Subcommittee held a hearing to discuss market structure issues and, more particularly, mutual fund
The potential danger is that the unrealized appreciation from years prior to purchase of the mutual fund
could become your client's income tax burden.
Twenty-eight million mutual fund
accounts had been opened by 1984, and that number was rising every year.
The chief concern is that depositors may not understand that the mutual fund
investments they buy from a depository institution are not deposits and are not covered by Federal Deposit Insurance Corporation (FDIC) insurance.
He calculated the damage to the average investor's mutual fund
account to be "a small fraction of 1%.
A well-diversified portfolio will have a mix of investment choices, such as large cap mutual funds
, growth mutual funds
, small cap mutual funds
, international mutual funds
, and bond funds so that you can lower overall market risk.
Assuming there were no other capital gains or losses recognized during the year and this $200,000 is distributed to the mutual fund
shareholders when the individual still owns one-tenth-of-one-percent interest, he would have to recognize a $200 capital gain on his investment, even if the value of the interest in the fund plus the distribution he receives results in no actual gain.
chairman of the Securities and Exchange Commission, said in a speech to a mutual fund
There are hundreds of such companies -- far more than needed for even a large mutual fund
to maintain a diverse portfolio.