Questions tagged [mutual-funds]

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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1answer
68 views

High Expense Ratio and High Return vs Low expense ratio and low return

I am currently investing in a Traditional IRA account using T Rowe Price. The two funds I am investing are as follows: Global Technology Fund (PRGTX) Gross expense ratio - 0.86% Average Annual Total ...
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5answers
2k views

Role of fees in mutual funds: Is it exaggerated?

It seems to me that the role of fees in mutual funds is somewhat exaggerated. Say, if funds A and B charge 1.3 and 0.3 percent, respectively, and over a period of 10 years the annualize return of A ...
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4answers
746 views

Fidelity funds vs S&P 500 (Is fidelity just "bad" at managing money?)

I invested a bunch of money around March (~9 months ago) in a Roth IRA. I am getting ready to rebalance, and put more money in this January. I was very attracted to Fidelity's ZERO funds, and put some ...
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1answer
63 views

When direct bonds investment is better than investment in debt funds?

Some good company (say SBI) bonds have coupon rate of 9%. Q1. Does this imply that we can better invest in such bonds instead of debt funds (which have < 9% returns)? Or should I rephrase: why ...
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0answers
47 views

Understanding how bond prices change

I came across following statement regarding Indian debt funds in ValueResearch ebook: The RBI announced retracting ₹2 lakh crore of banking funds through a 14-day reverse-repo operation in January ...
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0answers
39 views

How we earn from debt funds?

I was guessing how we earn from debt funds. I know the underlying bonds pay back interest. But I want to know how exactly we earn from debt funds. I know how NAV of the fund increases in decreasing ...
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1answer
72 views

Does Fidelity have equivalent ETFs of VFIAX and VDADX [closed]

I noticed that fidelity charges a fee for buying: Vanguard Index Admiral Fund (VFIAX) Vanguard Dividend Appreciation Fund (VDADX) Does fidelity have equivalent funds of the above that I won't be ...
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1answer
106 views

Possible ways to recover Mutual fund return (India)

In year 2003(I was a teenager), my uncle took some of my money and invested it under my name on mutual fund in India. Now in 2021, I want to know it's return. Unfortunately, neither him nor I have any ...
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1answer
89 views

Why do some Vanguard Admiral Shares have higher expense ratios? [duplicate]

My understanding of Vanguard "Admiral Funds" is that they charge lower management fees (have lower expense ratios) in exchange for there being a minimum investment amount. However, it seems ...
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2answers
99 views

Investing in funds via broker, funds in brokers name not mine

As the question states. I am considering investing in funds via a local broker who has quite a good reputation. It was pointed out to me that the funds, eg. BlackRock, would have no record of my name. ...
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1answer
71 views

Why shouldn't I hold onto debt funds for a long term?

(I'm in India) I've heard that debt funds should ideally be redeemed in 3 to 5 years. If the money is to be invested for a longer duration, equity funds are to be used. Is that valid? If so, why? I ...
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2answers
131 views

Could trading mutual funds be less expensive than ETFs?

I see there some mutual funds are no-transaction-fees NTF and no-load (or load-waived), the expense ratio of some of them is ~1% just like some ETFs, are both the same or trading (short term ...
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1answer
69 views

Should I switch my investment from one mutual fund to other? What should be the mathematics behind it?

Take an example of two mutual funds: A and B. For simplicity, following are assumptions: Both funds always perform exactly same (same fall or same growth depending the direction of market). Let us ...
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1answer
131 views

Should I enable trading?

While looking for Vanguard 500 Index Fund Admiral Shares (VFIAX) on IBKR I landed at: And the Enable Trading at the bottom caught my attention. Do we negotiate this in a different way than i.e. VOO ...
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1answer
84 views

Vanguard 500 Index Fund ETF, fixed income? [closed]

It seems some ETFs pay dividends other are fixed income. How can I know the one I'm interested in (i.e. Vanguard 500 Index Fund ETF) pays dividends or have fixed incomes?
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6answers
162 views

Can buying mutual funds that performed best in the past 10 years work?

It seems one method to invest, without using much brain power, is to say, at the beginning of each month, if we have $500 to invest, then just look at the list of the best performing mutual funds over ...
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3answers
93 views

Do we get the "deferred tax" property like an IRA or 401(k), when we buy a mutual fund?

Although mutual funds (in USA) tend to move their position very slowly, but after 10 years or 20 years, that'd be more. For example, if we buy a mutual fund in year 2000, and they invested in ...
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2answers
86 views

Will I get the mutual fund/etf monthly distributions from the first month I invest in?

If a mutual fund or the etf gives distributions on a monthly basis, Will I get the distributions from the first month I invest in?
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1answer
103 views

If a mutual fund or etf closes the fund, what will happen to my investments?

If a mutual fund or etf closes the fund, what will happen to my investments? Will it sell all the investments at the market price -at the time the fund/etf decided to close- then it gives every ...
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2answers
74 views

What are the factors on should consider before investing in Mutual funds or subscribe a SIP

I'm in early stage and trying to build my finance. I'm checking various Mutual funds and some of them have very good returns ~18%. But I want to consider other factors like expense ratio and other. ...
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2answers
89 views

What does my portfolio look like when I buy into a share in a fund?

As I understand it, a fund is a portfolio of investments. If I buy a share of the fund, what does "my" portfolio of investments look like? Of course I just own that one share of the fund, ...
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3answers
399 views

How can a mutual fund be considered any risk at all if it has an average 5 year 17% return? [duplicate]

I am confused as to why mutual funds/ETFs in lets say BRSVX - Bridgeway Small-Cap Value could be considered having any risk since the 5 year return is at 17%. Doesnt that mean that in 5 years it hasn'...
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3answers
209 views

How do I start building a portfolio of mutual funds/ETFs? [closed]

I am looking for information on building a portfolio of mutual funds and/or ETFs that will be more on the stable side. How can I begin this journey ? This is for someone who is over 70 and lives in ...
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1answer
32 views

Finding Funds by Sector Investment

Until now my research on funds has been driven by the factsheets and details supplied by the investment platform that I use. It allows me to start from a fund and see where the investments are made to ...
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1answer
689 views

For mutual funds, can you pay capital gains taxes even if you sustain a loss (as this article implies?)

https://www.businessinsider.com/uit-unit-investment-trust says: UITs come with much lower expense ratios and also come with favorable tax terms. Because of the way capital gains taxes are structured, ...
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2answers
72 views

Frequent Mutual Fund Trading in Rollover IRA

In recent years, I started paying attention to my Rollover IRA again after not looking at it for many years. During the Pandemic last year, I made some adjustments to the portfolio which worked out ...
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5answers
271 views

How do I choose one fund over another if "past performance does not indicate future performance"?

I want to grow my capital by investing in funds (e.g. exchange-traded funds, mutual funds). However, I always see this disclaimer: "past performance does not indicate future performance" (or ...
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3answers
404 views

What is the best place to park the money while waiting for a sizable future market drop?

For the past few years I have been investing in equity mutual funds via equal monthly installments (dollar cost averaging). With last year's drop in the market, I was willing to put a lump sum into ...
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10answers
6k views

What is the worst thing that can happen with my investment in mutual funds?

I have downloaded two apps namely Groww and ET Money to see the various Mutual Funds available in the market. The disclaimer reads that Mutual Funds are subject to market risks. I am curious to know ...
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2answers
57 views

Following a mutual fund's investment pattern in direct stock market

I understand the difference between investing in stock market vs mutual funds and I have also read the main advantage quoted by the mutual fund companies that the experience of fund manager(s) ...
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1answer
55 views

What are "unit interests" in the context of a mutual fund?

I'm trying to understand how listed open-ended funds (LOFs) work in different geographies and I sometimes encounter the term "unit interests." The fact that it is never elaborated on ...
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1answer
112 views

Do Canadian funds lose money when investors cancel their purchase within 48 hours?

I found this in the fact sheet of BMO Junior Oil Index ETF (TSX: ZJO): What if I change my mind? Under securities law in some provinces and territories, you have the right to cancel your purchase ...
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1answer
88 views

How can a fund have negative "Net Other Assets"?

This is the composition of the Fidelity Government Money Market Fund (SPAXX): How is it possible that the "Net Other Assets" is negative?
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1answer
93 views

What are the pros and cons of Inflation Protected funds vs Intermediate Government Securities funds?

For example: PRRIX - https://www.morningstar.com/funds/xnas/prrix/quote Inflation Protected SGVIX - https://www.morningstar.com/funds/xnas/sgvix/quote Intermediate Government
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2answers
1k views

What is a Government Money Market Fund?

I have a 401K and is currently invested. I have an option to rebalance part of the investment to a Fund called SPAXX https://fundresearch.fidelity.com/mutual-funds/summary/31617H102 Can someone ...
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3answers
2k views

Should we really be looking at the expense ratio while choosing funds?

While doing a bit of research on choosing mutual funds, I found that almost all the blog posts and web pages seem to suggest how harmful the expense ratio is, how much money we lose over time due to ...
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1answer
63 views

Average Annual Total Return - How to calculate fractional number of years?

Per the SEC Form N-1A, P(1+T)n = ERV Where: P=a hypothetical initial payment of $1,000. T=average annual total return. n =number of years. ERV= ending redeemable value of a hypothetical $1,000 ...
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0answers
34 views

India - Can a broker see the direct mutual funds I have?

This question is from the context of India. I have multiple regular mutual funds bought through a financial broker. I'd like to buy a few direct mutual funds now to maximise returns. Can the broker ...
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0answers
26 views

How to calculate Annualized tracking error of an Index fund given daily historical data?

Let's say I have Fund A (A) and Benchmark (B) and the daily closing value of both, stretching back 5 years. To find the Annualized Tracking Error (ATE), would this method be correct: Compute ...
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1answer
41 views

Financial Metrics Section in Morningstar mutual fund report (blue arrow with white cross?)

Just wondering if anyone out there knows what these blue arrow with white crosses mean under "Financial Metrics". I see them in almost all Morningstar mutual fund reports. Unsure why they ...
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1answer
98 views

What happens with funds whose underlying is in a different currency if there is hyper-inflation?

Let's suppose that a british investor invests in a mutual fund whose underlying is in american dollars, but which is bought in pounds sterling. This means that the fund's managers convert the pounds ...
0
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1answer
68 views

What is the effect of rising interest rates on a Bond Fund?

For Example: Assume you purchase $1,000 of a bond fund. If the bond fund has an average duration of 5 years and general interest rates increase 1% , what is the impact on the value of the bond. What ...
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3answers
2k views

If a mutual fund sell shares for a gain, do investors need to pay capital gains tax twice?

In here it is stated that An investor holding mutual fund shares in a taxable account may owe tax on any net capital gains realized from the sale of his fund shares during the calendar year. In ...
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0answers
45 views

Diversification vs VTSAX

What advantage do I gain by holding a mix of mutual funds over just VTSAX? One oughtn't put all one's eggs in one basket. One mitigates risk by holding multiple distinct asset classes in multiple ...
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3answers
4k views

Why a bank would propose a depositor to invest part of their money to mutual funds, instead of bank doing it itself?

Currently, some banks in Greece propose their depositors (via financial consultants) to invest their money in foreign mutual funds. Their main argument is that deposit interest rates are close to zero ...
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2answers
116 views

Is this the right way to calculate capital gains when cashing out a mutual fund?

I cashed out a taxable mutual fund in January. It is a long held fund. I got an activity history of all the transactions so that I can figure out an estimated tax to send in to the IRS as currently, I'...
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2answers
86 views

How are investments distributed across an index?

Let's say an individual invests a sum of money on an index, say, through Vanguard (e.g. VFIAX or VTSAX): How does the allocation of this investment get distributed across shares of the companies in ...
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0answers
18 views

How to read Mutual Funds's Exp ratio and its Yrs Average Annual Returns

I have read the following comments on this forum: Over long horizons, you absolutely want to minimise the expense ratio – a seemingly puny 2% fee p.a. can cost you a third of your savings over 35 ...
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0answers
27 views

how to evaluate Mutual Fund with overall return including Exp Ratio?

I am trying to learn how to choose mutual funds for long-term investment. My goal is to max the return. Fund A is simple. Exp Ratio is lower. Fund B has more restrictions. The Average Annual Returns ...
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1answer
114 views

Will mutual fund managers be penalised or even fired if their fund performance is too poor?

In my country, the banks always package mutual fund as a "safe", "diversified", and yet potentially "high return" investment as oppose to buying a stock. Most of the time,...

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