Posts Tagged ‘nav’

Why does the value of a mutual fund go down by the equal amount of the dividend paid?

While I was happy to get a 25 cent dividend, I then noticed that the NAV of my mutual fund went down by 25 cents. So, in the end, are dividends useless to the investor? Please tell me what the story with this is. Thanks in advance.


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When buying mutual funds, what are the most important aspects to look at?

Okay, I’m new to investing in funds.

I know a bit here or there, but I’m still learning. I don’t know enough to trust myself jumping into anything yet.

What I’m looking for is long-term stuff, like something for retirement. I’m 22 now so I guess it’s a great time to start.

What is the top parameters I should look for when browsing mutual funds? Like when browsing MorningStar I see NAV and Expense Ratios (I know what they are) but how do I know what is more important? Also, once I know what is important, how do I know if it’s good. I figured you probably want a low expense ratio, but what would you consider "low"?

I guess I just wanna know what to look for in numbers.


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Is there a list of money market funds that broke the buck?

In recent times, I know Reserve Primary has. A Community Bank MM fund did in the 90’s. I have also read that some other funds had their parent companies inject emergency cash to prevent sub-.00 NAV’s. Is there a list of money market funds that would have broke the buck if their parent’s hadn’t shored up the funds?


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How exactly does mutual funds work?

Hello, as a beginner investor how do you actually earn money from mutual funds? I heard that it’s not about compounding interest and that it’s about the NAV on the day you wish to withdraw the funds that will determine your profit?

I had a perception that it was like time deposit, that your initial investment will earn interest and interest is added up to your initial investment and it will compound over time only that the interest rates varies every time. This is not the case in mutual funds right or is it?

Can someone enlighten me on this? Thanks.
Note: I know what a mutual fund is at least it’s general idea that it’s composed of diversified investments managed by a fund manager. My question is how do you earn technically? Is it like compounding interest or not?


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