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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27 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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17 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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33 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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85 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 ...
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What are some common human errors related to NAV (Net Asset Value)?

I found this example of a NAV error and I am curious about what other kind of human errors can result in a mispricing and in a consequent money loss for a company. This is a reference request question ...
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49 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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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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37 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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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
73 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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69 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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16 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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25 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
95 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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When and how will DHFL bondholders get their money according to the resolution process? How much would be the haircut?

DHFL has been sold to Piramal, Now I want to know according to the terms of the deal when can bondholders expect to get their money? How much would be the haircut? How about mutual funds which have ...
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Tax for sold mutual funds and stocks in non-retirement accounts for resident aliens on OPT [duplicate]

Tax-residency --> Resident Alien Immigration status --> F1 - OPT There is a similar question here but not the same. My question is: Assume that I sold some mutual funds and stocks, however never ...
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2k views

How does a fund's expense ratio work?

There are several posts here but I cannot wrap my mind around it. Suppose a fund has an expense ratio of 0.055%, as I understand it that means $55 per $1000. Where do the expenses come from? Is every ...
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32 views

How do companies' Bitcoin (or other proof-of-work cryptocurrencies) holdings impact their ESG ratings?

When I land on the Morningstar page for a fund, for example Legal & General Future World Climate Change Equity Factors Index Fund, or a Blackrock iShares ETF page, for example iShares MSCI World, ...
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3answers
206 views

Trading out of mutual fund, into lower-cost ETF - is it worth it? [duplicate]

I've got a large amount of money (for me) in a US large cap index fund, with a 0.25% expense ratio. I've recently gotten back into investing after a long hiatus, and am now putting most of my money ...
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86 views

How could i start an ETF or Mutual fund? [closed]

I want to start a mutual fund and an etf. How would i go about doing this? i would want it to be publicly traded on the market. Thanks for any answers!
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1answer
22 views

While calculating PE ratio of a mutual fund what do I do with negative earnings of a particular stock?

I am reading one of Peter Lynch's book and he recommends some decisions based on the PE of a mutual fund. While trying to calculate the PE of the mutual fund, I came across a member stock with the ...
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5answers
271 views

What's stopping me “day-trade” mutual funds?

I invest monthly into several funds, such as this one. Last week, I noticed a new fund I'd just invested a small amount into ($100) had grown by 12% in one week (now worth $112). I investigated the ...
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Should we do sip investment through hdfc amc account or hdfc securities

I have recently open my DMAT account on HDFC Securities. I can purchase or shell share from here. Even I can purchase SIP from here but it is regular growth not director growth. Then I read on some ...
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347 views

What kind of services do mutual funds offer that their equivalent ETFs don't?

This answer by base64 mentions: Now you may ask why VTI is 0.03% while VTSAX 0.04%. That is because Vanguard of VTSAX provides service, while the service of VTI is provided by your broker. I don't ...
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How can a Mutual Fund that is not an ETF be traded on an exchange?

Have a look at https://www.onvista.de/fonds/DJE-Zins-Dividende-PA-EUR-Fonds-LU0553164731. It is the information page for a regular fund ("mutual fund"), not an ETF. Nevertheless, it has a ...
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How do I do an in-kind transfer of funds from an individual to joint account in Vanguard?

For a few years I had an individual brokerage account in Vanguard where I invested in some mutual funds. Now I decided to open a joint brokerage account with my wife and transfer these funds to this ...
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48 views

Finding green investment funds

I'm trying to find green/sustainable funds to add to my (UK) pension and am finding it quite hard to pick out good candidates. I'm interested more in the green credentials than in the performance. ...
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2answers
89 views

What is the difference between a fund and a strategy, and can you compare the two?

I am looking at some funds, and am confused by two things. What is the difference between a fund and a fund strategy? Am I correct in saying that a fund strategy is an underlying portfolio and the ...
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1answer
64 views

For a mutual fund, where can I find the AUM?

Given a mutual fund, where can I find its AUM (assets under management)? I am seeing a number on its page called "Total asset value". Is that the AUM? I don't think it is, because the number ...
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2answers
222 views

Will a massive sell off of the SPY ETF affect stock prices?

What will happen if there is a massive sell off in the SPY ETF? Will this affect the stock prices of its components? For example, will the price of Apple (APPL) shares drop? Or will it only affect the ...
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1answer
59 views

How can small cap index funds grow in value if the ones that grow are turned over?

Is it a good idea to invest in a small cap index fund / ETF? I don't understand how the fund can possibly grow due to the constraints of its definition. Definition: A small cap is generally a company ...
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Mutual Funds and SIP

Say if I am investing in a Mutual Fund with a planning to continue the SIP for 20 years with 3000 per month and increment it by 10% each year, but after 5 years the Mutual Fund starts to suffer heavy ...
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When a mutual fund's alpha is listed as “29.57” does that mean it outperformed “the market” by almost 30%?

A broker's site shows me a list of mutual funds sorted by alpha with the top being Morgan Stanley at "29.57" but provides no information on how to interpret this number. I know that the y-...
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1answer
91 views

Understanding performance of an index fund

I am trying to understand how to interpret the performance of an index fund. I have two views of the same TDB911 fund. The view in TD WebBroker (investing interface) shows that at the beginning of a ...
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2answers
147 views

Trying to understand what happens with a brokerage firm's customers when it goes bankrupt (case of study: Lehman Brothers)

I'm trying to understand how secure it is to own mutual funds/ETFs, not in terms of market volatility etc., but in terms of judicial security (i.e. what happens to your holdings if the firm goes ...
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2k views

Have maxed out retirement savings and have some cash on hand. Do I use my brokerage account?

I have a few Fidelity accounts including a 401k, a Roth IRA, and a brokerage account. My brokerage account is empty right now because I sold some Yahoo shares quite some time ago and moved that money ...
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5answers
2k views

If you never see the dividend for a fund, why does the ex-dividend date matter?

I'm currently invested in an open-ended fund. As I understand it, neither I nor my broker see its dividend. We just wake up on the payment day and see that the unit price of the fund has moved more ...
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27 views

In Morningstar's premium screener's value pulldown, each value has two lines, one without “All” and one with. What is difference?

When building screen, in the "Build Your Screen" popup, under "4. Value | Benchmark" all the selection lines have "All" or not. What does the "All" mean? For ...
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1answer
171 views

Why don't accumulation index funds (dividends are reinvested) raise more than the indexes they track?

Let's suppose a fund is tracking an index A, and let's suppose that it does it with 100% of accuracy. Therefore, given a particular period of time, the value of the fund should fall and rise exactly ...
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55 views

municipal bond shares the same across different states and funds

Why is municipal bond stock behavior virtually the same, regardless what state or fund you look at? For example, one can look at shares of the following mutual funds, each collecting municipal bonds ...
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2answers
157 views

Full year's worth of dividends and capital gains distributions even for new investors of mutual fund — but how?

I continue to come across this odd fact about mutual fund investing, but I never understood how it works. Let's say I decided to invest in ABC fund the day before year-end distributions. At the ...
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2answers
52 views

Short- vs. Long-term gains - buy/sell w/in 1 year

For mutual fund shares - An individual investor has bought shares of a fund over time, including in previous years and within the last year. If selling, can they use specific-ID cost basis to sell the ...
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1answer
57 views

Why choose NSE MFSS and/or BSE StAR MF?

While reading disclosure material published by mutual fund houses, I came across a discussion of the Mutual Fund Selection Service by NSE and the StAR MF service by BSE. To be precise, it was pg 50 of ...
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105 views

Why do Vanguard Mutual funds have slightly better performance than their ETF counterparts?

I'm trying to understand why in general mutual funds tend to very slightly outperform their ETF counterparts. I've put an example here but it seems to be true for the majority of mutual fund / ETFs I'...
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3answers
69 views

Changing funds in Roth IRA - Tax implications?

I have the following funds in a Roth IRA in a Fidelity account, and am determining if it is worth switching funds for a few of them. I mainly picked these because they have low expense ratios. I'm in ...
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86 views

Does a mutual fund buy new shares when it issues new units for individuals?

You may ponder what is the significance of this question. Consider a mutual fund that has achieved a high return rate possibly because it has bought a profitable share at a low price months ago. Now, ...
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2answers
73 views

Why can’t shares of open-end funds be traded during market hours?

I can't really find a straightforward answer to this. I read from Investopedia that NAV of open-end funds is calculated at the end of the day. So I believe that's the reason for why the fund can only ...
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1answer
415 views

Is there any mutual funds that will never lose money? Even a very small gain is acceptable [duplicate]

Is there any kind of mutual funds which can never have a loss, like maybe a currency fund?
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1answer
88 views

Why would the NAV/share of the same mutual fund be different for different classes?

Why would the NAV/share of the same mutual fund be different for different classes? For example, looking at the fairly popular Fidelity Contrafund Fund, we see... Yet looking at the class K shares, ...
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2answers
76 views

How does private equity work in a public mutual fund?

For example, I'm invested in FGCKX, which contains SpaceX, Reddit, and Juul equity, and some other companies not publically-traded. How is the day-to-day price determined for these? For a follow-up ...

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