Do Socially-Responsible Mutual Funds Perform Better Than Conventional Mutual Funds? - Research Paper Example

Only on StudentShare

Extract of sample
Do Socially-Responsible Mutual Funds Perform Better Than Conventional Mutual Funds?

Center of discussion in this paper mutual fund as a business which puts in funds in a branched out assortment of securities. The individuals purchasing a share or portion of the fund are considered to be the shareholders or owners. The investments made by these numerous individuals help the mutual fund company to acquire securities like bonds as well as stocks. The means of making money by a particular mutual fund from the securities that it invested in could be in two dissimilar approaches. Firstly, the mutual fund company could collect the interest or dividends paid on the security or secondly, the particular security could also increase in value. There also exist probabilities of losing money or experience a dip in value by a fund. Mutual funds could be classified into three usual kinds and they are the stock or equity, money and bond market. The stock funds refer to those which put in its funds principally in stocks that are issued by foreign or U.S. companies. The bond funds refer to those funds which principally invest in bonds. And the money market funds are the ones that chiefly make their investments in securities for the short-term. These securities are those that are made available in the market by the government and even its own agencies in the US, local as well as state governments and US corporations. It needs to be mentioned in this context that there exists two different kinds of mutual funds and they are the socially-responsible ones and the other is the conventional or the traditional one. ...
Download paper

Summary

The paper operates mainly based on research question which can be stated as follows: Do socially-responsible mutual funds perform better than conventional mutual funds? Mutual funds are stated to be an investment fund of different kind…
Author : liamquigley

Related Essays

DO MUTUAL FUNDS DELIVER ALPHA?
Market selection is when the manager is able to select among the assets traded in the market the lowly priced asset and sell it at a higher price in the future due to its rise in returns. Market timing funds in most cases moves towards highly concentrated industry, fund which are large and align to small-cap stocks. The decisions that some managers do make sometime do outperform the market while at times they underperform. This has raised the debate whether the manager’s performance is guided by luck or skill in the manner under which they arrive at decision making. This paper undertakes to...
10 pages (2510 words) Dissertation
Applications in Corporate Finance. Buildalot
Background of the company ...
10 pages (2510 words) Essay
Mutual Funds
Mutual funds are securities that are registered with the Securities and Exchange Commission (SEC). Broadly speaking, they are composed of stocks, bonds, short-term money market instruments, and other securities that function as a means of hedging against possible declines in a security or investment sector. The main understanding is that this diversified approach will provide the investor an option that protects them against market fluctuations, as when one security drops in value, another will increase. A manager or board of directors oversees these funds. The board hires a fund manager and...
5 pages (1255 words) Essay
Hedge Funds and Their Role in 2008 Financial Crisis
They are not regulated in the same sense as mutual funds. Mostly, high net worth individuals and some pension funds invest in hedge funds. It is not mandatory for them to be registered with the Securities and Exchange Commission because they are not supposed to provide information regarding their operation and valuation in public. The paper tries to explore the early history of hedge funds and how prima facie they are different from mutual funds. The paper also focuses on their role and the impact they created during 2008 financial crisis and also what regulatory measures are currently in...
3 pages (753 words) Essay
Hedge Funds
Most of the hedge funds are devised in such a manner that they are able to generate return for the investors with the rate of return that is generally more than the market return and even in times when the market is not performing well due to recession or some other reason. However, a retail investor cannot invest in the hedge fund the same way as he would have done it for stocks or mutual funds. The operations of these funds fall beyond the control of any government regulation and hence it is mainly at the fund manager’s discretion that the investment portfolio would be designed, what...
4 pages (1004 words) Essay
Money Market Mutual Funds
Money market funds are viewed widely as investments that are as safe as deposits in the bank that provide returns that are higher than those of bank deposits are. Money market funds often store money that at the time is not in current investment due to the funds high liquidity. In the United States, the first money market fund was the brainchild Henry B. R. Brown and Bruce R. Bent in 1971 in the form of The Reserve Fund. It offered investors an opportunity of earning small rates on their cash, preserved in the fund (Scott-Quin). The rates were paid out in form of dividends to the investors....
5 pages (1255 words) Essay
Private Equity Funds
These types of funds have huge difference from the other investment funds from the perspective of the business strategy used for seeking control over the businesses where they have invested (Cumming, 2009). These types of funds are also different in their structure because they are generally close-ended and have finite life time. The private equity funds have fixed number of shares. Private Equity Firms Nowadays, the leveraged buyout investment companies are referred to as the private equity organizations (Stowell, 2010; 2012). These types of firms are different from the venture capital firms...
6 pages (1506 words) Essay
Got a tricky question? Receive an answer from students like you! Try us!