HACE 3200 1nd Edition Lecture 27 Outline of Last Lecture I Mutual Funds II Types of Investment Companies III Investment Trusts Outline of Current Lecture Services offered by Mutual Funds o Automatic investment and withdrawal plans o Automatic reinvestment of interest dividends and capital gains o Easy establishment of retirement plans o Check writing o Bookkeeping and help with taxes Special Services o 1 Savings plans Investor adds funds on a regular basis o 2 Automatic reinvestment plans Dividends and capital gains are reinvested in additional shares o 3 Regular income Through withdrawal plans the investor can receive periodic repayment or income shares or dollars o 4 Conversion Privileges allows the investor the right to switch from on fund to another must confine switches within the same family of funds usually no transfer charges o 5 Check writing privileges shareholders have the right to write checks drawn on the Mutual Fund account normally check must be written for at least 500 almost all Money Funds have this privilege Mutual fund rate of return These notes represent a detailed interpretation of the professor s lecture GradeBuddy is best used as a supplement to your own notes not as a substitute o Total return dividends distributed capital gains ending NAV Beginning NAV beginning NAV Making the Purchase o Buy direct from mutual fund dealer Vanguard Fidelity o Mutual fund supermarket Charles Schwab o Internet Sources of Information o The Wall Street Journal o Forbes or Business Week o Smart Money or Consumer Reports o Morningstar Mutual Funds
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