Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Invest for the Long-Term

Invest for the Long-Term - Investing is a high-risk proposition unless it is to be done over a long-term. Due to the nature of the industry, there is no...

read entire tip

Recently Added
Other Great Sites

Large Cap Mutual Funds

Have you ever wondered as an investor, “which is the safest mutual fund to invest in?”

Far from the perception that many don’t, most investors and even those who end up buying Aggressive Growth Funds have considered Large Cap Mutual Funds as a safe bet before deciding they’re more of the risk loving folks.

What’s so safe about Large Cap Mutual Funds? If you take a look at the global corporate history, you will see that the large cap stocks, also known as Blue Chip stocks are by and far the most consistently high performers in the market, even when you average them across decades of performance data.

But what is the cap? Cap is the acronym for Market Capitalization, which is the premium you or your Large Cap Mutual Fund pays to buy a particular stock - the difference between the Par Value of the stock and it’s Market Price.

You may sometimes notice that while the Ford Inc stock today trades at around $13.75, the par value is $0.01 which means that the Large Cap Mutual Fund you are investing in, is paying close to $13.74 extra for owning 1 unit of Ford Motor Corporation’s share capital.

With a market capitalization of over $47 billion, Ford is one of the large Cap stocks that finds an entry in the portfolio of arguably every single Large Cap Mutual Fund there is in existence and because the stock has consistently performed and is expected to regularly outperform the market expectations.

This consistency in performance builds investor-trust thereby enhancing the goodwill of the company, which in turn translates into a high market value for a $0.01 par value share.

So why invest in a Large Cap Mutual Fund when you can buy Large Cap Stocks? This question is best answered by looking at this example.

Microsoft - has a par value of $0.00000625 per share and trades at around $24.68. Google has a par value of 0.01 and trades at around $540 a share and we’ve seen Ford as well. So what would you get for $1000 if you’re looking at an equal spread? Not a meaningful stock spread. This is where a $10 per unit (hypothetically speaking) of a Large Cap Mutual Fund makes a lot of sense investing in

To sum up, what’s great about investing in a Large Cap Mutual Fund? Growth - consistent growth although you may not find the kind of high yield an Aggressive Growth Mutual Fund might have to offer. This is the reason the average investor must have a spread in his or her portfolio that includes either large cap stocks or Large Cap Mutual Funds.

Discuss It!

Personal Loans Via BG/SBLC/MTN/LC/DLC said:

Dear Sir/Ma, We are currently offering portfolios for bank instruments (BG/SBLC) if you have any client that requires credit enhancement. We can offer them a bank security worth a Minimum of (1M) up to (1Billion) for 1year and 1day into their nominated bank account. The bank instrument can be use for purchase of goods from any manufacturer irrespective of their location. It can also serve as collateral with any bank in the world to secure loan for your project or to establish line of credit with your bank. We offer Bank Guarantee , all are issue from AAA Rated bank such as Deutsche Bank, HSBC Bank, UBS Zurich, Barclay's Bank , Standard Chartered Bank E.T.C. For more information, Endeavour to contact me as your convenient time. The commission is completely open to you and your party on the CLIENT SIDE ONLY.Ask for the procedure for your review, kindly request for a draft contract only if you are interested. We are open to send you our working procedures but please do not contact me to suggest an ICBPO. Note:We do not offer direct funding, we offer Bank Instruments in the form of BGs and SBLCs which can be discounted or monetized for funding Thank You Mr Ronald Rajnesh Gounder Email:grounesh.advisory1@gmail.com Skype:grounesh.advisory

In normocephalic Atraumatic that said:

Magnificent post very informative I wonder why the other specialists of this sector do not notice this You must continue your writing I am sure youve a great readers base already.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Municipal Investment Trust

Municipal Investment Trust - Municipal Investment Trust is the entities that hold a stake in the numerous municipal bonds and then sell share to the public that represent an interest in those bonds. When the municipal bonds then pay off compensation or mature, the trust passes the income on to...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com