BUSINESS DATA ANALYSIS

Business Data Analysis

Business Data Analysis

Introduction

In a mutual fund, the investors' money is collected and invested in different investment areas. A domestic or foreign investment company combines these funds to create them in accordance with predetermined investment objectives based on the principle of risk diversification, including equities, fixed income securities, money market, or real estate. Mutual funds raise capital and invest it in accordance with the fund's prospectus specified investment objectives. Common divisions are industry divisions, such as money market funds, bond funds, equity funds or regional divisions, such as Europe, Asia. This report analyze the sample of 400 mutual funds on the basis of different variables including category, risk, fess, objective, expense ratio, 2003 return, 3year return and 5 year return. The relationship is developed and shown through graphs and charts. In the end, recommendation is given to investor in choosing the type of mutual funds for investment.

Mutual Funds

Mutual funds are savings instruments. It is a heritage that forms the input of a group of people who invest their capital in search of profitability. What the fund is to collect the money contributed by all participants, for an entity to be responsible for management and administration. Funds tend to diversify their investments, so that is intended to monetary assets, stocks, bonds and other financial instruments. Thus, the capital of the participants is more sheltered. The operation of an investment fund can be understood as follows. The savings of each person goes to the bottom, thus creating a large common heritage. Given the size of this heritage, depositors reach a bargaining power that would be impossible to get if you invested each their own. Experts acknowledge several advantages to mutual funds. Usually do not require large amounts of money to enter. On the other hand, are well regulated and their subscriptions are easy to buy and sell. Finally, investment funds are managed professionally, which is an advantage for the saver who does not have great knowledge of finance (Cardarelli, 2004).

Types of Mutual Funds

Mutual fund assets is composed of contributions from individuals and corporations (called participants or contributors), for investment in publicly offered securities and assets permitted by law, a corporation that manages the risk and expense of members or contributors. Investors have access to over 2,500 mutual funds from more than a hundred families of funds. Many of our mutual funds are offered without sales charges, sales charge, with termination fees, reduced fees or U.S. dollars, which allows you to choose from over 5,000 options. You have the flexibility to buy, sell, or transfer the majority of funds without transaction fees (Hall, 2000).

Money Market Funds

Money market funds contain mainly bank deposits and money market instruments, i.e. short-term debt securities and promissory note loans. Money market funds offer a return equal to the money market rates to be large investors with high-rate stability conditions on daily availability. Money market funds are suitable for the investment of short-term liquidity. The money market fund complements the range of funds in an ideal ...