chartered wealth manager accredited financial analyst financial planner ISO 9001 Accredited Certification Body Training
International Board of Standards - Professional Designations -  Accredited Education.  Creating the World's Leaders in Management ™

 
<< Previous    1...   45  46  [47]  48  49  ...91    Next >>

With respect to dividend payments and capital gains distributions, funds usually will give you a choice: the fund can send you a check or other form of payment, or you can have your dividends or distributions reinvested in the fund to buy more shares (often without paying an additional sales load). 

Top 

Factors to Consider 

Thinking about your long-term investment strategies and tolerance for risk can help you decide what type of fund is best suited for you. But you should also consider the effect that fees and taxes will have on your returns over time. 

Degrees of Risk 

All funds carry some level of risk. You may lose some or all of the money you invest — your principal — because the securities held by a fund go up and down in value. Dividend or interest payments may also fluctuate as market conditions change. 

Before you invest, be sure to read a fund's prospectus and shareholder reports to learn about its investment strategy and the potential risks. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals. 

A Word About Derivatives  

Derivatives are financial instruments whose performance is derived, at least in part, from the performance of an underlying asset, security, or index. Even small market movements can dramatically affect their value, sometimes in unpredictable ways. 

There are many types of derivatives with many different uses. A fund's prospectus will disclose whether and how it may use derivatives. You may also want to call a fund and ask how it uses these instruments. 

Fees and Expenses 

As with any business, running a mutual fund involves costs — including shareholder transaction costs, investment advisory fees, and marketing and distribution expenses. Funds pass along these costs to investors by imposing fees and expenses. It is important that you understand these charges because they lower your returns. 

Some funds impose "shareholder fees" directly on investors whenever they buy or sell shares. In addition, every fund has regular, recurring, fund-wide "operating expenses." Funds typically pay their operating expenses out of fund assets — which means that investors indirectly pay these costs. 

<< Previous    1...   45  46  [47]  48  49  ...91    Next >>

About GAFM ®

  The GAFM International Board of Standards is TUV Accredited and ISO Certified for Quality and ISO 29990 Certified for Training Standards

 

 

Validate and Verify Member Here

 

 TUV Accredited

 




 

Join our Linkedin Group

LinkedIn.com

 




 Accredited Certified Financial Analyst Chartered Accountant

The GAFM ® Board is the 1st Graduate Certification Body to Become Accredited  and Certified for: ISO 9001 Quality and ISO 29990 Training in the World. GAFM ® owns the former AAFM ® Certifications and Programs

 

 

IP/Rights Global