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3 years ago

Why do some people consider mutual funds a more convenient investment than stocks or bonds?

Business

2 answers:

stich3 [128]3 years ago

7 0

Answer:

People consider mutual funds a more convenient investment than stocks or bonds because of the following:

1. Mutual fund is less risky compared to stocks or bonds

2. There is comparatively higher returns compared to stocks or bonds

3. Mutual funds are managed by experts compared to stocks or bonds

4. Liquidity

5. Mutual funds are convenient compared to stocks or bonds

Explanation:

Mutual fund is an investment whereby funds are mobilized from different investors to buy shares, stocks, bonds of different entities operating in different industries.

The total investment is known as a portfolio. Such investment is managed by experts known as portfolio managers.

1. Mutual Fund is Less Risky Compared to Stocks or Bonds

Unlike stocks or bonds, mutual funds invest in securities of varying risks thereby diversifying the entire portfolio.

2. There is Comparatively Higher Returns compared to Stocks or Bonds

Unlike stocks or bonds, mutual funds invest in different industries and sectors thereby ensuring some stability and high returns

3. Mutual Funds are Managed by Experts Compared to Stocks or Bonds

Mutual funds are managed by skilled individual who are highly knowledgeable about the market, but such skill may be lacking for individual investors who wants to invest in stocks or bonds.

4. Liquidity - Mutual funds enjoy some degree of liquidity as they are allowed to buy or sell their share of the fund once a day at the close of the market at the fund’s net asset value

5. Mutual Funds are Convenient Compared to Stocks or Bonds

Unlike stock and bonds you do not need to do personal research before investment with mutual fund. stock monitoring is done by the fund manager.

MAXImum [283]3 years ago

4 0

I think because in a mutual they both gain and invest but on their own its too much

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nirvana33 [79]

<u>Solution and Explanation:</u>

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S.no Particulars and explanation Amount

1. Sales ( $268000 + 84000 ) 352000

2. Contribution ( 1 multiply with 40 percent) 140000

3. Fied expense ( $119200 plus $6200 ) 125400

4. Net operating income ( 2 step minus 3 step) $14600

therefore, net operating income increased by $ 14600 plus $12000

Note: the sales were not given, so i have taken or assumed. Please change the figure if there is different figure of sales in the question given.

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3 years ago

Which conclusion is accurately reflected in the data table? (5 points)

Anna11 [10]

Answer:

As your level of education increases, your income potential also increases.

Explanation:

As per the graph, the highest earners are holders of a doctoral degree, professional degrees, and master degrees. These are highly educated individuals.

At the bottom end, the lowest earners are those with high school diplomas and below.

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3 years ago

Profits of a large corporation are taxed twice, once as corporate income and again as personal income of stockholders.

Alex Ar [27]

True, profits of a large corporation are taxed twice, once a corporate income and again as personal income of stockholders. This is because the corporation is taxed when they earn the profit but then the stockholders are taxed as it is paid out as income/earnings.

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3 years ago

Henry Jones contributed equipment, inventory, and $57,300 cash to a partnership. The equipment had a book value of $27,800 and m

Oliga [24]

Answer:

A. $86,900

Explanation:

Henry’s capital account will be credited by the amount of $86,900. See computation below.

Cash $57,300

Equipment 34,100

Inventory 10,400

Note payable (14,900)

————

Total $86,900

*Both the equipment and the inventory will be recorded on partnership’s book at fair market value at the time of contribution.

*The partnership may absorb the obligation if it is associated with an asset contributed by partner. Thus, it will be deducted to his capital account as contribution to the partnership.

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3 years ago

On July 1, 2021, Markwell Company acquired equipment. Markwell paid $185,000 in cash on July 1, 2021, and signed a $740,000 noni

Alenkasestr [34]

Answer:

c. Debit: Discount on notes payable, $41,884.

Explanation:

The journal entry is shown below:

Equipment $883,116

Discount on Notes payable $41,884 ($740,000 - $698,116)

To Notes payable $740,000

To Cash $185,000

(Being the amount paid in cash and note payable is recorded)

Working note

= Note payable amount × PVF factor at 6% for one year

= $740,000 × 0.94340

= $698,116

For recording this we debited the equipment as it increased the assets and discount is always debited while the note payable and cash is credited as it increased the liabilities and reduced the assets

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3 years ago