Mutual Funds – I

What is Safe Asset?

Secured asset calls as a safe asset. Stocks, Mutual funds, bonds, bank accounts and residential house are considered as the safest assets. In these types of investment risk will be minimized. Secured asset will have low risk as per law.

What is Switching?Mutual-funds_itsallaboutmoney

In mutual fund investment transferring from one fund to another is called as switching. Investors can transfer their investment from one fund to another and for this commission have to be paid for the mutual fund companies.

What is Savings Rate?

An individual who earns money will save some part for investment, emergency and retirement called as savings rate. Commonly in this type of investment the investors will invest that have minimum risks such as mutual funds and bonds. To know the economy of the country will be easier if the saving percentage of that country is calculated.

Total Annual Fund Operating Expenses?

The expenses that occurred for administering the mutual fund for a year, is called as total annual fund operating expense. This will include administration expense and other extra expenses. We can also consider this for investing in a fund.

What is Trade Date in Financial Segment?

Commonly the order of buying (date, month and year) of a financial instrument is called as Trade date. In trading the ordered date to buy or sell the shares, bonds, mutual funds, commodities and future and options are called Trade date. This trade date differs from the settlement date. In shares, bonds and funds after ordering for a trade date the settlement will be done after a specific day.

What is Turn Over Ratio?

The changing investment in mutual funds and portfolio is called Turnover ratio. The ratio will be based on the investment of the fund manager. Investors will invest in the fund, which has less turnover ratio because if the turnover ratio is large then the brokerage fee and the transaction fee will be more. This will reduce the profit that is attained from the fund.

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