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Research Paper sample - Do Socially-Responsible Mutual Funds Perform Better Than Conventional Mutual Funds?
Finance & Accounting
Pages 11 (2761 words)
Do Socially-Responsible Mutual Funds Perform Better Than Conventional Mutual Funds? Introduction Mutual funds are stated to be an investment fund of different kind. Investment fund refers to the assortment of investments for instance bonds, stocks or other kind of funds…
However, mutual funds mainly concentrate on particular category of investments. For instance, a mutual fund might only invest essentially in large companies stocks, government bonds or even stocks of certain specific countries. Few of the mutual funds might chiefly invest in a combination of bonds as well as stocks or even in different mutual funds. Making investments in mutual funds have since long been considered to be safe as it combines an individual’s money with numerous different investors. This makes it possible for the venture to make different kinds of investments at a comparatively less cost. The other positive side of investing in mutual funds is that the investment decisions are made by a professional individual known as the manager (Ontario Securities Commission, 2009). Mutual Funds In simple words, it can be stated that mutual fund is 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. ...
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