Question by TJS: How do you start a Mutual Fund or ETF?
Let’s say I have a group of Investors that are willing pony up a Million Bucks to start a Mutual Fund. How do you get started? What is the process for starting an ETF?

Best answer:

Answer by jaded_poser
talk to a banker. duh.

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Q&A: How do you start a Mutual Fund or ETF? is a post from: squeezeApenny.com

Question by Masaki A: When do I get paid on dividen mutual fund or ETF and how?
I have a ishare ETF bounght on March. And dividen yield is 4.1%
at this time. When do I get paid and how does it calculate?
Let’s say I own 000 of shares. Do they calculate the dividen based on the origibnal purchased price or the current market value?

Best answer:

Answer by wartz
You get paid when the fund says it distributes dividends..They will be paid based on what the underlying stocks pay. The 4.1% quoted is an historical rate, what you get now and in the future depends on the fortunes of the companies in the fund.

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Q&A: When do I get paid on dividen mutual fund or ETF and how? is a post from: squeezeApenny.com

Question by Ryan: What should i invest in mutual funds, ETF’s, equity funds, etd?
Im young 18 and looking to invest, I want to get a head start and learn now so I will have better knowledge when I get older and maybe a few more bucks from it, I really only want to invest about a thousand dollars I know its not much to invest but its all I can afford. What should I invest my money into considering my circumstances. There seems to be so many options, mutual funds, IRA, ETF’s, euity funds, stocks, cd’s, etd.

Please help me out. Any other tips and advice will be greatly apprecaited

Thanks!

Best answer:

Answer by Joe
You should invest in a diversified mix of stocks, bonds, and money market funds. You want to buy a diversified portfolio of stocks as individual stocks are too risky. Most folks have a dificult time buying a properly balanced portfoilio of stocks on their own. They will misbalance their portfolio by buying all small stocks or all growth stocks, or some other misbalanced assortment of stocks. Unless you know what you are doing, it is best to buy mutual funds. I like Vanguard.com, other people like Fidelity, TIAA-CREF, and DFA. Buy no-load, low cost funds. If you are like most people you will invest part of your money aggressively in stock funds, and part conservatively in money market funds and bond funds. Vanguard.com has an on-line questionnaire which will give you an idea of how to do “Asset Allocation,” determining how much to put in each type of fund.

If your company offers a 401K plan at work, try to invest the most you can. The money grows tax free, and some companies will match your contribution. Investing in a mutual fund IRA is also a good idea.

I like index funds. Because of their broad diversification, you are less likely to have a dramatic drop in value. They also have the lowest expenses. For stock funds, I would suggest putting ~70-80% of your money in the Vanguard Total Stock Market Index Fund. and ~20-30% in a foreign stock index fund. However, there are many different opinions out there on what the best mutual funds are. Read the links below and form your own opinion.

If you have high-interest debt, like credit cards, it is best to pay this off first before trying most of the investment ideas above. You should also have 3-6 months of salary saved up as an emergency fund in a bank or money market fund before trying more risky investments.

Believing advice you get on Yahoo answers can be risky, so read these websites for further information. If you find it too confusing, contact a professional financial advisor. They will charge you significant commissions, however.

Sources:

http://www.vanguard.com/VGApp/hnw/planningeducation

http://www.fool.com/school.htm

http://sec.gov/investor/pubs/assetallocation.htm

http://www.diehards.org/readsites.htm

http://finance.yahoo.com/education/begin_investing

http://finance.yahoo.com/funds/basics

Asset Allocation Calculators
(Determining how much to put in stocks and how much into bonds and money markets is a personal decision depending on your financial status. These Asset Allocation questionaires give you a rough idea how to do this. I like Vanguard best, but try some of the other sites as well.)

https://flagship.vanguard.com/VGApp/hnw/FundsInvQuestionnaire?cbdInitTransUrl=https%3A//flagship.vanguard.com/VGApp/hnw/planningeducation/education

https://ais2.tiaa-cref.org/cgi-bin/WebObjects.exe/DTAssetAlcEval

http://www.ifa.com/SurveyNET/index.aspx

Web forum: http://www.diehards.org/
(Many investment web forums are overrun by scam artists. This one seems the most legitimate site.)

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What should i invest in mutual funds, ETF’s, equity funds, etd? is a post from: squeezeApenny.com

Question by electrongalaxy: What is the difference between a ETF and a Mutual Fund?
Vanguard mutual funds are very attractive but require a inital deposit of ,500, I know I can buy the ETF with my sharebuilder account a few shares at a time.

When I buy a ETF is it the same as investing in the mutual fund?
Or is the price of a ETF just the value of the fund? (supply/demand)

Best answer:

Answer by Chris C
An ETF is more or less the same thing as a mutual fund.

The only difference is an ETF is based on the performance of a specific market index (performance is based on what an index does), where as a mutual fund is based on a more random number of companies chosen by a fund manager (performance is based on whether the fund manager picks good stocks or not).

ETF’s biggest selling point is that they don’t have as large of MER’s as a mutual fund becuase they don’t have to pay for a fund manager to pick stocks. This could be a good thing or a bad thing, depending of how good of a fund manager you have.

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What is the difference between a ETF and a Mutual Fund? is a post from: squeezeApenny.com

Question by Bundy: Dividends in a mutual funds/ETF are distribute to the shareholders or back to the funds?
Dividends in a mutual funds/ETF are distribute to the shareholders or back to the funds?

Do we get to invest the dividends or the dividends are automatically reinvested in to the funds, hence you own more shares of the funds? Lastly, I was told I should invest tax inefficient funds into my IRA rather than tax efficient funds. Can someone give me some comparisons?

Best answer:

Answer by ernesthinton
When you purchase a mutual fund, you have the option of receiving cash dividends or having your dividends reinvested. Certainly you can have your dividends reinvested into an IRA, but will your fund allow this and what is your ceiling and what is your floor as far as your salary is concerned.

I would place money into my IRA on my own, that way I would have more control.

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Q&A: Dividends in a mutual funds/ETF are distribute to the shareholders or back to the funds? is a post from: squeezeApenny.com

Question by Fira: What does “an Exchange Traded Fund that might closely track the investments of your mutual fund” mean?
I’m new to this stuff….

Best answer:

Answer by spmgd8
Exchange traded funds have the same performance as an index (less fees), for example the Dow Jones. You cannot invest in a index, but you can invest in a ETF. The Dow only has 30 stocks in it. If you are investing in a Blue Chip mutual fund, chances are that it is going to hold a lot of the same stocks. Thus, the performance might be the same, but you typically pay more for a mutual fund because you have to pay the manager. An ETF is not managed, thus their are no management fees. You want to invest in a fund that beats it’s comparable index or ETF that follows that index.

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What does “an Exchange Traded Fund that might closely track the investments of your mutual fund” mean? is a post from: squeezeApenny.com

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