What is a mutual fund


Please answer the following question:

Question 1: What is a mutual fund? In what sense is it a financial institution? What benefits do mutual funds provide individual investors?

Question 2: What are the three components of the return that an investor receives from a mutual fund? How is the net asset value (NAV) of a mutaul fund determined? What is meant by the term market-to-market daily?

Question 3: An investor purchases a mutual fund share for $100. The fund pays dividends of $3, distributes a cqapital gain of $4, and cahrges a fee of $2 when the fund is sold one year later for $105. What is the net rate of return from this investment?

Question 4: Describe the difference between a defined benefit pension fund and a defined contribution pension fund?

Question 5: Describe the major features of ERISA.

Question 6: Your employer uses a flat benefit formula to determine retirement payments to its employees. The fund pays an annual benefit of $2,500 per year of service. Calculate your annual benefit payments for 25, 28, and 30 years of service.

Note: Please show guided help with steps and answer.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: What is a mutual fund
Reference No:- TGS0889084

Expected delivery within 24 Hours