Q&A: mutual fund

Question: #1: Mutual Fund?
(Q1)Everybody talks about investing money in Mutual Fund.suppose, you want to invest some money in Mutual Fund (CLOSE ENDED for 3 years say) (say in HDFC Tax saving Mutual Fund). How you will be paid your return after 3 years ?does the Mutual Fund company AUTOMATICALLY sends your profit(if any) by cheque to your home address ?who pays the return(profit) ? i am confused, how one will get the return(profit) ?(Q2)Now suppose,suppose, you want to invest some money in Mutual Fund (OPEN ENDED i.e you can withdraw money at any time...right ?) . now, say you want to discontinue after 3 Months.what you have to do ? i have read ...you have to "sell the Mutual Fund" ....but selling to whom ? how do i get the customer to sell?is it necessary to sell ?if i dont sell but want to withdraw what will happen ?very much confused.-------------------------------------------can you please clarify my some more doubts ?which is better mode of investment ?(1)with dividend or without dividend ?(2)close ended or open ended ?--------------------------------------i have also read a fact , that suppose you invested some mone to a MF fund company. but the MF company ruined and could not survive....thats means, you are not getting any profit...right ? your money is gone....correct ?well ok....but the most stunning fact and dangerous thing i have read is that you have to sell your furnitures,TVs,Computers and other household things to pay off the MF company . because , they say,...you too have the liability as the company ruins so you also ruin.is this fact true ? - asked by sanko

Answer: ... - answered by: muncie birder
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Question: #3: Cashing out a mutual fund and owing the IRS?
I cashed out a $6,000 mutual fund and know I will owe a lot on my 2008 taxes. How can I start "paying back" the IRS now to avoid dept in April? I've started contributing more to my 401K to lower my taxable income and I've increased my W4 contributions to claim 0 and take out $50 extra per pay check. Any other suggestions? - asked by Alyssa

Answer: ... - answered by: The Robster
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Question: #5: Why is it bad for a mutual fund to have too manyassets?
I keep reading on morningstar and other finance sites about how "such and such a mutual fund is getting too bloated with assets," and that this is especially a problem for funds that focus on small-cap stocks. And I see that Vanguard and many other companies have closed funds to new investors--even Vanguard's Windsor II, which focuses on huge corporations, has restricted new investors. Let's say a mutual fund purchases more that 50% of a company, why is that bad? Isn't that what Warren Buffet's Berkshire Hathaway does? - asked by Yardbird

Answer: ... - answered by: alan76543
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Question: #7: What is the difference between a blend, value, andgrowth mutual fund? What is the best fund?
Can anyone tell me the difference between a blend, value, and growth mutual fund. Also in any kind of mutual fund, what is the best one to buy? Include what fund and what kind (blend, value, or growth), and why. Also include personal experiences if possible. - asked by TheOCSurf07

Answer: ... - answered by: Puzzleman
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Question: #9: How to decide which is the best mutual fund toinvest in India. please also give answers tofollowing.?
1.How to study mutual fund performance.2.What are different types for example growth fund or reinvestment. Which one is better3.At the moment which one is best option.4.Some good web sites which will give reliable information on Mutual funds and how they are doing. - asked by sgeo786

Answer: ... - answered by: CaptAnil
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Question: #11: What happens to my mutual fund shares if themutual fund company goes bankrupt?
I have my money invested in several mutual funds with a large mutual fund company. What happens if said mutual fund company goes bankrupt, maybe after fraud or an accounting scandal? Is my money insured in any way, or is it gone? - asked by AxelBoldt

Answer: ... - answered by: jeff410
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Question: #13: What is the best way to pick a long term mutualfund?
I am a 25 year old looking to invest 10K in mutual funds. I am not planning on touching it for many years to come. What is the best way to pick a long term mutual fund? - asked by David J

Answer: ... - answered by: Kyle B
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Question: #15: Will Mutual Fund prices rise quickly after thebailout bill is passed?
I know certain stocks will rise, however, doesn't a sudden drop in a mutual fund's price sometimes "kill" the mutual fund to where it will never recover? I don't personally own any mutual funds because I have seen this happen to mutual funds about once every 5-7 years for the past 20 years. - asked by yeshua2000

Answer: ... - answered by: Janet
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Question: #17: What is a good mutual fund to invest in to makemoney fast?
I want to invest in a Mutual Fund to make money fast which one is a good one? - asked by crazyjoe68e

Answer: ... - answered by: Dave W
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Question: #19: How wise decision it is to invest in Mutual fundto get tax saving and earn more money ?
How is SBI magnum tax Gain Scheme ?Which is the best scheme for mutual fund investment and when to invest ? - asked by ccc

Answer: ... - answered by: ravi
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Question: #21: which is the best type of mutual fund that willminimize the income tax. What is ELSS?
I heard ElSS is the mutual fund option for reducing the income tax for a salaried employee. I wanted to know which company's funds are having good returns now? - asked by nagesh M

Answer: ... - answered by: Ramasubramanian
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Question: #23: Is a mutual fund the best way to save for a firsthome?
I'm looking in 3-4 years to purchase my first home. I have been currently saving for it, but if there was a decent way to marginally increase the overall downpayment that would help in the long run. I could buy into a blended mutual fund which has decent returns.Is this an okay way to do it without being hit with penalties or are CD's a better way to accumulate this money? - asked by atg28

Answer: ... - answered by: Yanswersmonitorsarenazis
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Question: #25: What is the difference between a mutual fund andan IRA?
I'm saving for the long run........if I put the money in a mutual fund can I make withdrawels ( if necessary ) without restrictions or financial penalties?.......but if I put it in an IRA, i can't touch until 59 1/2 years of age? - asked by videogamer1979

Answer: ... - answered by: STEPHEN J
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Question: #27: How much do you get from mutual fund dividends?
How does a mutual fund decide how much it will pay out in dividends at the end of the year? Is it based on a percentage of the value gained during the year? Could someone give me a general idea if nothing else? - asked by Philip L

Answer: ... - answered by: Marla
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Question: #29: what is a mutual fund and how do they work?
I am about to graduate from college and would like to star investing in a mutual fund, but I have no idea how they work. How do I invest?, what are the returns I get?, is there a risk?, how much do I invest? - asked by felipe_alanis

Answer: ... - answered by: enoriverbend
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