Though mutual funds are often considered one of the safer investments on the market,
certain types of mutual funds are not suitable for those whose main goal is to avoid losses at all costs.
Not exact matches
estimate
of annual income from a specific security position over the next rolling 12 months; calculated for U.S. government, corporate, and municipal bonds, and CDs by multiplying the coupon rate by the face value
of the security; calculated for common stocks (including ADRs and REITs) and
mutual funds using an Indicated Annual Dividend (IAD); calculated for fixed rate bonds (including treasury, agency, GSE, corporate, and municipal bonds), CDs, common stocks, ADRs, REITs, and
mutual funds when available; not calculated for preferred stocks, ETFs, ETNs, UITs, international stocks, closed - end
funds, and
certain types of bonds
In addition to the fees described above (except for margin rates, futures commissions, paper statement fees, and alternative investment fees that are not applicable to these
types of ERISA plan accounts), E * TRADE may also receive direct compensation in the form
of sales loads for the purchase and sale
of certain mutual fund shares purchased for the plan.
If an investor chooses a deferred sales charge option, the
mutual fund company that manages and administers the
funds deducts what is called a deferred sales charge from the value
of units sold if they are sold within a
certain number
of years (which varies according to the
fund type and company).
Special rules for
mutual funds permit the tax treatment
of certain types of income to «flow through» to the shareholders.
«When used correctly,
mutual funds can be very appropriate for
certain types of investors.»
For
certain individuals, it may be more prudent to purchase a term life insurance policy with lower premiums for a fixed amount
of time and take the difference in savings between the two policies and invest in different
types of stocks, bonds and
mutual funds which may lead to higher returns and a more diversified portfolio.
The Canada Revenue Agency says the
types of investments allowed in a TFSA are generally the same as an Registered Retirement Savings Plan and include cash,
mutual funds, securities listed on a designated stock exchange, guaranteed investment certificates bonds and
certain shares
of small business corporations.
This
type of mutual fund forgoes broad diversification to concentrate on a
certain segment
of the economy.
Mutual funds that excludes
certain types of companies use what's called «negative screening.»
As Heath explains, T - series and corporate class
mutual fund structures are used to convert
certain types of investment income into other
types of investment income.