What percentage of the total dollars invested in investment companies are in each type of investment company?

According to researchers at the Investment Company Institute (ICI), in its 2013 study, of the approximate $14.7 trillion invested, 88% is invested in mutual funds, 1.8% in closed-ended mutual funds, 8.8% in ETFs, and less than 0.1% in unit investment trusts.

What percentage of mutual fund assets is typically invested in each mutual fund category by American families?

The Investment Company Institute also found that 55% of mutual fund assets are invested in stock funds, 23% are invested in cash or money market funds, 15% are invested in bond funds, and 6% are a hybrid of both bond and money market funds.

When looking at comparisons of mutual funds, what is "performance"?

Mutual fund performance is the appreciation of the current assets of a fund, plus the reinvestment of the earnings of the portfolio, less any fees related to this activity.

Who invests in mutual funds?

According to researchers at the ICI, citing its own data and data from the U.S. Census Bureau, in 2012, 92 million individual investors owned mutual funds and held 89% of all mutual fund assets. This represents a total of approximately 53.8 million households or 44% of all U.S. households. The ICI researchers note that the ownership percentages have remained rather stable over the past ten years. The researchers also note that the median amount invested in mutual funds is approximately $100,000; that 48% of these investors are college graduates; and that 72% of investors worked full- or part-time. They also note that 93% of these investors are investing for retirement, 27% are investing for education, and 63% invested in their first mutual fund through their employer.

55% of mutual fund assets are invested in stock funds, 23% are invested in cash or money market funds, 15% are invested in bond funds, and 6% are a hybrid of both bond and money market funds.

55% of mutual fund assets are invested in stock funds, 23% are invested in cash or money market funds, 15% are invested in bond funds, and 6% are a hybrid of both bond and money market funds.

How do mutual funds provide for diversification?

By their nature, mutual funds provide diversification, even within their specialty segments, because they hold many different investment instruments that may or may not be correlated. Some investments may go up and others may decline, but overall, the portfolio manager wants the portfolio to be sufficiently diverse that its performance is positive, exceeding its peers (other similar mutual funds) and "the market" at large. If some of its positions are not performing well, this can be offset by others that are doing well, providing investment diversity.

Why can a mutual fund provide for more diversity of investments than any one individual investment?

A mutual fund that pools together large amounts of capital from many investors can choose many more investment vehicles, thereby providing much more diversity within the portfolio.

 
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