HOW MUCH PROFIT COULD I MAKE WITH MUTUAL FUND?

first of all i dont know anything about funds
but my crony endorsed me to put my income in to mutual fund
if i deposit $4300 for 6 months in mutual account during the finish of the day how most distinction would i have roughly?

{ 4 comments }

Sharon T August 23, 2011 at 12:05 am

Mutual funds are better investments for a term longer than 6 months.

Go to Vanguard.com and research different funds. You’ll learn a lot and be better prepared to know whether this is something you want to do.

silverfox August 23, 2011 at 12:13 am

A mutual fund is like a pie. Dozens of different stocks make up the pie and normally the largest percentage is about 2 or three; that is one stock value will never exceed 2% of the total share of the mutual fund. When you buy or trade mutual funds you are buying stocks, just in small amounts so your risk is lessened and your portfolio is more diversified. Mutual funds can also pay out dividends; the profits at the end of a period for a co. that’s split among the owners or stockholders. Anyways, some fund have commissions and some don’t. If you invested your 4300 in a mutual fund right now, with the way u.s. economy is your capital probably wouldn’t go over a couple percent but in six months you might earn up to that or double in dividends depending what you invest in. So, to be honest, since i’m an investor as well based on my portfolio’s performance since December, you could end up with between $257 to $130

Rich P August 23, 2011 at 1:10 am

First off, there are three main types of funds that come in two types. Large Cap, Mid Cap, and Small cap funds. each of these options can be found in Growth funds and Value funds. I dont know about the 6 months, but i just got finished rolling some annual numbers. and this is the jist of what i got.
The highest returns (percentages of 4300 that you will make) were found in the small cap value funds, but they were kind of unpredictable, and could get you 8% just as easily as 20%. The growth funds arent for you if you are in it for the short term, because they are meant to be slow, safe, and resilient. Large Cap Value funds were very dependable, and pulled in about 17-20% return. There was virtually none of these that strayed far from a safe spot with a healthy return.
Take my word for it, i just analyzed 876 mutual funds (finished yesterday night) based on every aspect of performance and relation. I’m not sure if u can get a large cap value fund though, that sounds like your research. In Simpler terms: Growth funds are safe and low, Value funds are risky with high return. You should never trust ur money in a fund without at least looking at its performance

cor T August 23, 2011 at 1:49 am

As the mutual funds are designed by investment companies to buy shares in different stocks and other securities, the mutual fund investor along with their ownership of shares of the mutual fund, have a restricted claim to ownership on few of the securities held by the mutual fund. Besides mutual funds provide the dual advantages of diversification and professional money management services to manage the money invested in the fund. Shareholders can buy more shares or sell the shares they own whenever they wish. But these transactions should be carried out carefully since the prices of the shares vary daily and can significantly affect your profits.
http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html

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