1. Your Questions About Mutual Funds Definition
Susan asks…
What exactly is the definition of a blue chip stock?
How would I know a blue chip stock if I were to look for one? I have looked at the holding of
mutual funds with blue chip in their names and I have my serious doubt that many of the
companies in those portfolios are in fact blue chip. Is Amazon for example a blue chip?
Steve Winston answers:
Blue chip is an overused term these days. As for mutual funds, many use the term without
regard to what their funds actually contain. NO, Amazon is not a blue chip stock. Maybe in 20
years it might be but prior to 5 years ago it did not even make a profit.
I have give some thought to what should be considered a blue chip stock and I did actually find
a few. 1. It must pay a dividend and it must raise the dividend at least 5 times out of the
previous 10. 2. It must have a conservative capital structure of no more than 33% long term
debt to equity. The earning record must be consistent and increasing with no more than 3 down
years in the last 10. Its sales must also be increasing.
I have published a list of what I consider blue chips on my blog.
Http://munciebirder.blogspot.com/
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2. Joseph asks…
what is mutual fund and need how to do project on it.?
hi guys ....i need simple definition for mutual fund,and explain what is it ??
Thanx for answering me
Steve Winston answers:
A mutual fund is a pool of money from numerous investors who wish to save or make money
just like you. Investing in a mutual fund can be a lot easier than buying and selling individual
stocks and bonds on your own. Investors can sell their shares when they want.
Each fund's investments are chosen and monitored by qualified professionals who use this
money to create a portfolio. That portfolio could consist of stocks, bonds, money market
instruments or a combination of those.
By investing in mutual funds, you could diversify your portfolio across a large number of
securities so as to minimise risk. By spreading your money over numerous securities, which is
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3. what a mutual fund does, you need not worry about the fluctuation of the individual securities in
the fund's portfolio.
People have different investment needs depending on their financial goals, tolerance for risk
and time frame—when they need the money they invested.
Mutual funds are created with these needs in mind-we start with you. Before you choose
investments, think about your financial goals, risk tolerance and time frame. Then choose
investments that match them.
Http://mutual-funds-personalfin.blogspot.in/2012/05/how-does-sip-work-in-mutual-fund.html
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