HACE 3200 1nd Edition Lecture 27Outline of Last Lecture I. Mutual FundsII. Types of Investment CompaniesIII. Investment TrustsOutline of Current Lecture- Services offered by Mutual Fundso Automatic investment and withdrawal planso Automatic reinvestment of interest, dividends, and capital gainso Easy establishment of retirement planso Check writingo Bookkeeping and help with taxes - Special Serviceso 1. Savings plans Investor adds funds on a regular basiso 2. Automatic reinvestment plans Dividends and capital gains are reinvested in additional shareso 3. Regular income Through withdrawal plans, the investor can receive periodic repayment orincome- shares or dollarso 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 chargeso 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 returnThese 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 Purchaseo Buy direct from mutual fund dealer Vanguard, Fidelityo Mutual fund supermarket Charles Schwabo Internet - Sources of Informationo The Wall Street Journalo Forbes or Business Weeko Smart Money or Consumer Reportso Morningstar Mutual
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