Do Mutual Funds impart returns of 35% to 45% when they right to be heard?
WHen Mutual Funds advertise that their olden annual returns have be 35%, does it mean that you truly got 35% of your investment as return after one year of investment?Does Equity funds hold risk of loosing money or just risk of not making profit?
Answers: Mutual Funds are significantly regulated... but all your money is at risk. Funds that own earned 35% or more contained by a year or averaged 25% or more for the past 3 years may be the closing funds you want to get into immediately.
So. if a fund has a 3 year average of 25%... that medium the average for each year be 25%. That could be 35% year 1, 10% year 2 and 25% year 3.....
You need to obtain a book or two on mutual funds. The basic source... you should never invest in anything you don't fully apprehend. You should never chase performance (last years winner often turn out to be this years losers.
Technically any fund can travel to $0.00. Very (very) aggressive funds can lose 35 -75% in one year.
Learn going on for "asset allocation". Using a model made by you, for you.. is the best way to progress. READ READ READ, LEARN, LEARN, LEARN.. Take the time, it will be well worth it.
The funds are picking the timeframe they choose surrounded by order to show the well brought-up rates. A few small amount of mutual funds even outperform the stock market indexes - some of that due to the fees they might charge.
Equity funds are stock funds and can move as violently as the market moves. They are traditionally long-term investments which later reward in more predictable results. However, the daytime to day price and even the total market can swing an equity fund price drastically.
i would stay away from mutual funds.
THey own hidden fees near them that i have never like.
I would certainly stay away from soemthing that say 35% or more return, THat is WAY out of the ordinary, resembling probably 1% of mutual funds will do that good, some will even lose 35%
Investments adjectives have a occasion of losing money. Funds sometimes do have a year or several years of returns of 35 % or even more - and oodles can lose that much or more. Real Estate and Energy Funds had a few years beside those type of returns - Real Estate funds are not doing so well the closing year or so - losing double digits.
It is a fools bet to buy a fund because it had a few virtuous years. It is usually because it wasn't diversified e.g. like Real Estate, Energy, Technology, emerging market etc. When you buy you will be buying at the top and most likely they will not supply you the same return or will drop down to contribute you a loss.
You need to own a well diversified investment of roomy, small and foreiqn stock and bonds and maybe a small amount of actual estate, energy or other shrink focused funds. Over the long run you should get a robust return without hugh gain or losses in any given year.
If you had a a couple of hundred thousand dollars to invest in a small business what would you invest in?
Answers: If you had ever been to Mindo, Ecuador you would know the answer right off the top of your head. Mindo is a world wide major tourist destination but there is not a decent place to eat in town. It must have 30 different hostels. If I had the gumpsion, which I do not, I would open a decent restaurant there. Things are not expensive in Ecuador. About 1/4 the price of things in the U S, but U S dollars is the national currency. There are opportunities in Ecuador beyond belief to make money from the tourist trade.
I was in Ecuador for 6 weeks. I and the friend I traveled with both agreed Mindo had by far the worst eating establishments. But I have to tell you that there is not a real great choice anywhere else either. Just try to get breakfast before 9 am. Almost impossible. Before 8 am it is impossible.
None...
100k is too big of a risk.
I have compiled some notes at this link. Read them and they would help you to decide:
http://mutualbargains.blogspot.com/
I would invest in Forex
About IPOs?
If a company wants to retain the central ownership, would they offer smaller number no. of shares but at higher prices?Answers: Initial Public Offerings are roughly done to acquire capital for growth of a company. It is not across the world accepted practice to to what you suggest as what happen is that the company is 'valued' and then the shares are issued.
Majority ownership can be maintain by the company depending on 'issued' shares versus 'authorized' shares. Issued shares are those that are 'sold' to the public while the balance of the shares are considered 'treasury' shares and held by the company.
To retain majority ownership, the owner(s) would retain at lowest 50% of the shares issued. The number of shares and price per share will be determinded by the underwriter based on the bazaar for the issue.