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    Mutual Fund Listing

     

     

     

    Mutual Funds

    Global Trading Group, Inc. offers to its investors a very large selection of mutual funds...
    (See list of Mutual Funds)

    WHAT IS A MUTUAL FUND?

    In a mutual fund, small investors numbered in the thousand and many not so small investors independently agree to add money into a pool organized  and managed by a group of  professional money managers. Each investor owns a part of the pool according to the amount of his investment. Investors can become part of the pool either by investing a small amount regularly or by investing  a large amount of money.

     

    INVESTMENT OBJECTIVE AND MUTUAL FUND INVESTING

    Regardless of your investments objective, you will find a mutual fund with a stated objective that will match�your investment objective. The following are the most common investment objectives:

    • Investing for retirement

    • Investing for education

    • Investing for growth

    • Investing for aggressive growth

    TYPES OF MUTUAL FUNDS
    Basically all mutual funds fall into six major groups:

    • Money market funds

    • Bond fund

    • Tax exempt bond funds

    • Common stock funds

    • Balance funds

    • Specialized fund

    NET ASSET VALUE

    Every afternoon at or after the close of the markets mutual funds add up the closing value of the securities ( bond, stock commercial paper etc) together with other assets�( cash etc)�the mutual fund may own, all liabilities and various fees and expenses are subtracted etc. The result is the total net assets of the fund. This amount is divided by the number of shares outstanding to arrive at the net asset value per share.  The net asset value per share fluctuates based on factors such as interest rates, value of the securities in the portfolio, performance of the�companies in the portfolio, general economic conditions. Anytime an investor wishes to add money to a mutual fund the money is added and the investor receives an amount of shares from the pool. The number of shares is always based on the net asset value. Net asset value determines also the amount of money the investor receives when he redeems his/her shares. For �money market mutual fund this may not apply. Most mutual fund make it a practice to maintain at $ 1.00�the value of the shares of its money market fund.

    MUTUAL FUNDS & FEES

    Mutual funds are divided into two large groups . Load funds and no load funds. No load funds are sold at net asset value and load funds are sold at net asset value plus a commission.

    PERFORMANCE OF MUTUAL FUNDS

    There are three basic ways a mutual fund makes money for its investors:

    • Payment of dividend

    • Payment of Capital gains

    • Increase in net asset value

    MUTUAL FUND PROSPECTUS

    A prospectus is a booklet prepared by a mutual fund company. In the booklet the mutual fund company complies with FULL DISCLOSURE RULES and states the conditions under which investors can participate in the mutual fund. Investors are urged to always read a prospectus before investing in a mutual fund.

     

    Dollar Cost Averaging

    Dollar cost averaging is a widely used method of timing investments.  It requires simply that the investor purchase equal dollar amounts of a stock or
    mutual fund on a regular basis (weekly, monthly, or quarterly). The success of a dollar cost averaging strategy is based on the fact that the same amount of
    money will buy more shares when the share price is low, and fewer shares when the share price is high.

    This strategy alleviates investment timing problems.  It is particularly effective for mutual fund 'investment. Specialized expertise is not required for successful dollar cost averaging; however the investor must have the discipline to save and invest regularly, even in declining markets.

    Amount Deposit at COMPOUNDED FUTURE VALUE OF $100.00 at the beginning of the month:

     

    YEAR

    5%

    8%

    15%

    1

    $1,233

    $1,253

    $1,302

    2

    $2,529

    $2,611

    $2,814

    3

    $3,891

    $4,081

    $4,568

    5

    $6,829

    $7,397

    $8,968

    10

    $15,593

    $18,417

    $27,866

    20

    $41,275

    $59,295

    $151,596

     

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    Mutual Fund Listing

     

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    Global Trading Group, Inc. Member, FINRA, MSRB, & SIPC (516) 876-4918