Mutual Funds Advice & Planner Bill DeWinter
A mutual
fund is a professionally-managed form of collective investments that
pools mutual funds or money from many investors and invests it in
stocks, bonds, short-term money market instruments, and/or other
securities.
In most
mutual funds, the fund manager, who is also known as the portfolio
manager, trades the mutual funds underlying securities, realizing
capital gains or losses, and collects the dividend or interest income.
The investment proceeds are then passed along to the individual
investors. The value of a share of mutual funds, known as the net
asset value per share (NAV), is calculated daily based on the total
value of most mutual funds divided by the number of shares currently
issued and outstanding. |
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Bill
DeWinter BA (Econ)
Certified Financial Planner
KW Area:
1.519.880.8171
Toll Free:
1.888.665.7534
London: 1.519.264.9988
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DeWinter Financial
Founded in 1995
CFP
Since 2000
P.O. Box 781
Mt. Brydges
ON Canada
N0L 1W0
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Mutual funds can invest in
many different kinds of securities. The most common are cash, stock,
and bonds, but there are hundreds of sub-categories. Stock funds,
for instance, can invest primarily in the shares of a particular
industry, such as technology or utilities. These are known as sector
funds. Bond funds can vary according to risk (e.g., high-yield junk
bonds or investment-grade corporate bonds), type of issuers (e.g.,
government agencies, corporations, or municipalities), or maturity
of the bonds (short- or long-term). Both stock and bond funds can
invest in primarily U.S. securities (domestic funds), both U.S. and
foreign securities (global funds), or primarily foreign securities
(international funds).
Most mutual funds' investment portfolios are continually adjusted
under the supervision of a professional manager, who forecasts the
future performance of investments appropriate for the fund and
chooses those which he or she believes will most closely match the
fund's stated investment objective. A mutual fund is administered
through a parent management company, which may hire or fire fund
managers.
Mutual funds are liable to a special set of regulatory, accounting,
and tax rules. Unlike most other types of business entities, they
are not taxed on their income as long as they distribute
substantially all of it to their shareholders. Also, the type of
income they earn is often unchanged as it passes through to the
shareholders. Taxable distributions
can be either ordinary income or capital gains, depending on how the
fund earned those distributions.
Call Bill DeWinter
- Toll Free:
1.888.665.7534
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