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Sunday, January 31, 2010

Mutual Fund Investments or Unit Trusts

Mutual Fund Investments or Unit Trusts

If you are new to investments I would suggest you to get started through Mutual Fund wherein the risk is much less compared to Stock Market its mainly because it is being managed by professional Fund managers who do their best to manage your investments.

Massachussets Investors Trust now known as MFS Investment Mangement was the first Mutual fund founded in 1924.

Mutual Fund is basically where money from all the investors are made into a pool and then been managed by Fund Managers. There are a lot of companies and Banks which offer Mutual Funds in India. The buying of Mutual Fund will include a small percentage as brokerage. Mutual Fund is basically meant to hold the fund for atleast two years. Even most of the Mutual Fund will have a two year of locking period within which you cannot sell your Mutual Fund.

Types of Mutual Funds:

Exchange Traded Fund

Equity Funds

Open ended Fund

Bonds Fund

Money Market Funds

Funds of Fund

Hedge Funds

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Quarterly Results

Lupin Q3 net up 38 pct, in line with forecast

Tata Steel Q3 net up 155% to Rs 1,191.75 cr

Canara Bank Q3 profit zooms 50 pct

Dena Bank Q3 net dips 4 pct to Rs 134 cr

Lanco Infratech Q3 net up 34 pct at Rs 106 cr

Motherson Sumi Q3 net nearly triples as sales surge

BPCL Q3 net down by more than half

Stock Terms and jargons

Active Share: An active share is the one which has a volume in trade (it has changed hands in many), these are the shares which are easy to buy or sell. which also may have some news sticked along with it.

Advance-Decline ration: It is also known as advanced decline ratio. This ratio is used to find whether market is in bullish trend or in the bearish trend, in other words whether the market is in advacing or declining. It is found by dividing the total number of advanced shares to the total number of declined shares. For instance: there are a total of 10000 stocks listed in the market of them 800 advances and 200 declines then the Advance Decline ratio would be 4 and since the ratio. Any value more than 1 would indicate a rising trend (bullish trend) and any value which is less than 1 would indicate a declining trend (bearish trend).

ADR: American Depository Receipt is a negotiable receipt issued by the US banks stating that the number of shares have been deposited with them. This can be directly traded in the stock market. This in turn eases an American investor to buy ADR than to buy an foreign stock in a foreign market. The rate of an ADR is close to the rate of the stock in the home market.

After-Tax:

Aging Schedule

AGM or Annual General Meeting

Amortization

Annual Report

Application-Money

Asset

Asset Coverage

Asset Financing

Auction Market

Auctioning of an Issue

Automated Screen Trading (AST)

Average

Averaging

Averaging In/Averaging Out.