To be used for any questions on mutual funds. For index based funds question the Index-fund tag should be used.

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7
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3answers
212 views

Is losing money in my 401K normal?

I had about $10.5K in my Fidelity 401K account invested in their target fund. I started it a year ago. This is my first time with investing in the stock market. For the past 2-3 months, it keeps ...
0
votes
0answers
49 views

What are some good mutual funds to consider for a new grad looking to maximize market return? [closed]

I'm 21 and will be finishing my degree in Computer Science in May. I will be moving to New York City to work at s software engineer at a major financial tech company starting in June. I'd starting to ...
3
votes
0answers
43 views

How do ETF fees get applied?

I'm reading the prospectus for an ETF I've recently purchased. It states: fees paid directly from your investment I understand how this works for the OCF. However, there are 3 further fees for ...
-6
votes
1answer
54 views

Are there any mutual funds that uses modern port folio theory across various stocks? [closed]

I ask questions about modern port folio theory. How to find an optimum linear combination of various investments? The theory is there to answer a simple question. Given the same return how to ...
0
votes
0answers
11 views

Bid ask spread on a mutual fund containing derivatives

On mutual funds with bid and ask prices, It is my understanding that these prices should be close to the bid and ask prices of underlying securities according to their weights in the fund, divided by ...
-1
votes
1answer
103 views

Where to invest, that compounds interest more than annual?

Forgive my ignorance, I found this webpage compounding weekly and noticed the 0.24% 7 day rate. I have heard that there were secure investment vehicles that compounded interest more frequently than ...
-2
votes
2answers
51 views

How religiously should Dollar Cost Averaging be followed?

IF I simply interpret Dollar Cost Averaging as a method of putting an amount x in my investment every month through thick and thins of the market, then I am contradicting what the article in ...
0
votes
1answer
29 views

How to calculate a mutual fund's yield

Suppose that a generic (and over-simplified) XYZ Mutual Fund is made of N stocks of $25 each. Those stocks pay $0.3 dividends over the year. I already know that yield is calculated by dividing the ...
3
votes
1answer
43 views

Is dividend factored into Annualized return?

I would like to keep it as simple as possible. If I visit Vanguard Benchmark returns page here https://personal.vanguard.com/us/funds/tools/benchmarkreturns It shows annualized returns for different ...
5
votes
0answers
54 views

Mexican Index Mutual Funds

Pardon if my English is not good. I see answers here recommend index mutual funds and want to know what are some mutual funds available in my market (Mexico).
0
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0answers
28 views

Liquid fund and short term capital gain tax

In India, there is long/short term capital gain tax. For debt mutual funds, short term capital gain tax is applied if the fund is redeemed within 3 years and it is equal to investor's income tax slab. ...
1
vote
1answer
47 views

Are automatic Dividend Reinvestments (DRIPs) subject to Redemption Fees?

It's the end of 2015, and most mutual funds are paying out their annual dividends, which I have enrolled in DRIPs (dividend reinvestment programs). Since a "DRIP" transaction is similar to purchasing ...
0
votes
1answer
47 views

Can you claim a loss for tax purposes if you “swap” mutual funds within the same mutual fund company?

A friend wants to sell a poorly performing mutual fund (see this question for details). The fund is not in a tax-sheltered account. According to his broker, there will be no fees to sell that fund ...
-1
votes
1answer
42 views

How can Cost Basis be greater than the Amount Invested?

A friend owns a mutual fund, Capital World Bond Fund CL A. He has owned it for a fairly long time, but does not know how long. It might have originally been with a different brokerage about a decade ...
3
votes
2answers
65 views

Does a mutual fund's return include fees?

If a mutual fund's published YTD return is 3%, and it has an up-front sales charge of 5% and a 12b1 fee of 2%, are these fees included in the YTD return, or would the "real" return be 3%-5%-2% = -4%?
1
vote
1answer
66 views

How to calculate mutual fund return

How do you calculate the annual return of a mutual fund? I understand roughly how mutual funds work, and I'm trying to decide which mutual funds to invest in, but to prove to myself that I understand ...
4
votes
3answers
72 views

Are wash sale rules different for stocks and ETFs / Mutual Funds?

In this answer to this question, JoeTaxpayer writes: To take the loss this year, he'd have to sell soon, and can't buy it back for 30 days. If, for whatever reason, the stock comes back a bit, ...
3
votes
1answer
78 views

Is there a way to roll over short-term gains and avoid capital gain tax

I'm looking to sell some shares of stock I bought, which have provided a 62% return since I bought them a few months ago and want to roll over the proceeds into a mutual fund. I was just wondering if ...
2
votes
2answers
91 views

Compounded Interest on Mutual Funds

I may be missing or misunderstanding something regarding how compound interest works with mutual funds and ETFs. Let's say I have $10,000, and I invest said monies in mutual fund XXXXX at $100/share, ...
1
vote
1answer
64 views

Investment in mutual fund in India for long term goals

I am first time planning to invest in mutual funds. My goal is long term investment. I am 32, married & from India. I would like to invest Rs 10K per month in SIP mode. On reading couple of ...
1
vote
1answer
32 views

Should a SIP as spread out as possible, or minimize time spent by money in savings accounts?

In the context of India, where money in savings accounts gets 4% interest (tax free for me) per annum, and SIP frequency doesnt affect my transaction costs in any way I'm trying to understand, which ...
0
votes
1answer
75 views

What has been the worst return ultra-short-term funds have delivered?

What's the worst performance any investor has seen? A 1% drop in value? 2%? I know that liquid funds have seen as much as a 0.4% drop in value in a single day. Since ultra-short-term funds are ...
1
vote
0answers
48 views

How safe are liquid funds?

This question pertains to India. Have liquid funds ever suspended or limited redemptions? Or, worse, gone bankrupt? What has been the worst fall in value any investor in a liquid fund has faced? ...
1
vote
2answers
26 views

Are there any hedged international funds in India?

I live in India, and want to diversify into the foreign equity market, via a mutual fund offered in India. But I don't want to take on the currency risk. In some countries, funds are offered that ...
-3
votes
3answers
85 views

Are there “buy and hold” passively managed funds?

A "buy and hold" passively managed fund would be like an index fund when it comes to buying stocks, but the fund would never sell a stock, say if it's removed from the index. If there's a significant ...
0
votes
3answers
128 views

Is it a good idea to rebalance without withdrawing money?

Rebalancing is generally done by withdrawing money from investments that have a greater percentage of your money than you want, and putting it in investments where you're underweight. An alternative ...
3
votes
2answers
318 views

Did I get screwed in taxes on a mutual fund dividend payment?

A few years ago I bought a mutual fund in late November, and unbeknownst to me, the fund was set to do an annual dividend distribution about 3 weeks later in mid-December. I bought 5000 shares at ...
0
votes
3answers
91 views

What fraction of one's portfolio is safe to invest in a single mutual fund?

Is there a limit on the fraction of one's portfolio that is safe to invest in a single mutual fund? The risks I'm concerned about are the fund manager making bad decisions and the fund not generating ...
2
votes
1answer
118 views

What percentage of my money should I invest outside my country?

I live in India, and invest in both Indian and international equity mutual funds[1]. What percentage of my portfolio should I invest outside India? I thought that since India's GDP is some 3% of the ...
0
votes
0answers
28 views

Are there are widely accepted criteria on when a fund is under-performing enough to exit it?

I'm told that once I invest in a fund, I should periodically (like annually) monitor the performance of the fund and exit it if it's consistently under-performing its index or the median fund in its ...
4
votes
2answers
135 views

How do you calculate the annualised return of your portfolio from the annualised returns of each of your funds?

I've invested in a number of mutual funds, and I've calculated the annualised return of each of them, using a spreadsheet (and the xirr function). I want to calculate the annualised return of the ...
6
votes
1answer
125 views

Can Mutual Funds Invest In the Start Up Market?

This question refers to this article. I can't find Snapchat anywhere on the US stock exchanges as a public company, so I'm assuming that the Fidelity Blue Chip was holding this through the start up ...
6
votes
5answers
260 views

How to invest a $1000 in an index mutual fund?

My pre-teen daughter saved up a $1000 and I thought it might teach her how finances work if we invested it in a mutual fund. Specifically in an index fund like S&P 500 or some such. The problem ...
-1
votes
1answer
34 views

Are there mutual funds that invest in specific groups of companies?

For instance, the Tata group is broken up into many different companies https://www.google.com/finance?q=TATA&ei=qR42VoPhM4vL0ASU07vYBw Are there mutual funds that track the aggregate of such ...
3
votes
2answers
193 views

I'm cashing in 30k in mutual funds, what should I expect for my taxes?

I am looking at cashing in about 30K in mutual funds (non IRA), looking to pay off my house. Are there "rule of thumb" estimates/percentages on what I will have to in taxes? Most of the funds were ...
4
votes
3answers
244 views

Do mutual fund companies deliberately “censor” their portfolios/funds?

In Survivorship Bias, David McRaney writes: In finance, this is a common pitfall. The economist Mark Klinedinst explained to me that mutual funds, companies that offer stock portfolios, ...
3
votes
2answers
419 views

Vanguard S&P 500 Mutual Fund has an average of 10% annual gain for any given period of 20 consecutive years?

Is it true that Vanguard S&P 500 Mutual Fund has an average of 10% annual gain for any given period of 20 consecutive years since the great depression? If my math is correct, than if I were to ...
4
votes
3answers
864 views

Why do people invest in mutual fund rather than directly buying shares?

I have seen a lot of people investing in a mutual fund rather than buying the shares directly. Though buying shares gives higher return, people tend to invest in mutual funds more.
1
vote
1answer
37 views

Claiming tax loss after selling US mutual fund using specific lots

Background: I want to sell one mutual fund that I own in Vanguard to claim a tax loss on it. The default cost basis offered in Vanguard is "Average Cost" method. But I calculated that if I use the ...
2
votes
2answers
96 views

Which is wiser, to investing in 'good' companies with lower expected return value, or to invest in 'bad' companies and use the surplus for charity? [closed]

I am concerned about the future of life on this planet, humanity's future, pain, suffering, etc... Naturally, I am also concerned about own family's financial well-being. If I would want to invest ...
9
votes
3answers
2k views

Should I care about expense ratios?

I've never been an investor before, but I recently came into some money. In my understanding, expense ratios for mutual funds and ETFs are typically incorporated into the yield or ticker price. If ...
0
votes
1answer
41 views

Mutual Funds merger

If I have 977 units of a mutual fund and after 5 years it merges with another mutual fund within same company. How much unit of new mutual fund will I be having?
0
votes
3answers
70 views

Must ETF companies match an investor's amount invested in an ETF?

1Source: p 147, Investing For Canadians For Dummies, 3 Ed (2009) by Tony Martin, Eric Tyson The lack of CDIC insurance on a money market fund shouldn’t trouble you. Mutual fund companies can’t ...
0
votes
2answers
106 views

What's so hard about a mutual fund manager pricing their mutual fund?

An article in today's Wall Street Journal (2015-08-16) titled A New Computer Glitch is Rocking the Mutual Fund Industry is all about how some kind of computer (software?) failure at a company called ...
5
votes
4answers
211 views

Should I scale down my 401k?

Today I met with my 401k provider at work. They tend to push certain plans and a schedule that is as follows: Aggressive Fund (100% stocks, 0% bonds) Moderate Fund (50% stocks, 50% bonds) ...
3
votes
0answers
42 views

Funds supermarkets transaction time frames - are all so vague?

When I was buying funds through fund supermarket time frames given were very vague. Trade was supposed to be executed at next "transaction point", without much description when is it. I am guessing ...
1
vote
1answer
68 views

Why this mutual fund (VTTHX) is not traded today ? [duplicate]

As you may know the market is in panic today. However if you look for VTTHX, you will see it frozen since Aug 21. Did this fund magically escaped the panic ? what is going on ?
1
vote
2answers
238 views

How are money market mutual funds just as risky as cash?

Foreword: In this question, I ask NOT about default risk. Abbreviate 'money market mutual funds' to MMMF. MMMF are a type of mutual fund, which is always riskier than cash, per this MoneySense ...
1
vote
1answer
34 views

looking for research tool to plug in and evaluate theoretical historical returns

I am just starting to invest. I would like to find a calculator to which I could enter, say, a monthly amount - perhaps $100 - and put it into different classes of funds over arbitrary periods (say ...
2
votes
0answers
36 views

Avoiding tax complexities of MLPs

I would like to invest in master limited partnerships (MLPs) for their high yield, but would like to avoid their tax complexities. If I buy exposure to MLPs through an ETF or mutual fund, will that ...