Secret Finance

SF Giants Fan Forever asked:


I have an online banking account that recieves 5% APY and the Interest rate is 4.89%.

What exactly is APY, and what is the 5% used for. What is the interest rate per month? Do you just divide 4.89% by 12?

johnny asked:


Currently i am contributing to my 401K with very aggressive investments since retirment is still 25+ years away for me.
With all of this talk of a recession, would it be wise to not be so aggressive in my investments for a while?

H asked:


Because of their insight and knowledge of the business, investment options, and trends? Just curious. I would imagine ordinary folks may be able to be money savvy to a certain level over time but probably still no equal to the pros who breathe finance/accounting/banking work night and day.
cybe’s made a very interesting point. I guess “ignorant” could be a “blessing” in the investment world LOL? Perhaps the more one knows, the more confidence, the more risk one may take, and the more money one may make - or lose?

shuang90740 asked:


Do you think this change in the stock market is related to the downturn in banking?

Mr. Main Event asked:


One of my friends told me that his company is currently in “Phase C” in the investment banking process. I’ve never heard of the term “Phase C”. I was just wondering was it something that he made up to make me feel ignorant or was it something that I’m actually not familiar with?

tommy752701 asked:


This is a question on a job application I am completing. I need to describe a recent development and how it would affect an investment banking department 1st hand in their day to day work.
Any ideas would be much appreciated!
Thanks

sanko asked:


(Q1)
Everybody talks about investing money in Mutual Fund.
suppose, you want to invest some money in Mutual Fund (CLOSE ENDED for 3 years say) (say in HDFC Tax saving Mutual Fund).

How you will be paid your return after 3 years ?

does the Mutual Fund company AUTOMATICALLY sends your profit(if any) by cheque to your home address ?

who pays the return(profit) ? i am confused, how one will get the return(profit) ?

(Q2)
Now suppose,

suppose, you want to invest some money in Mutual Fund (OPEN ENDED i.e you can withdraw money at any time…right ?) .

now, say you want to discontinue after 3 Months.

what you have to do ? i have read …you have to “sell the Mutual Fund” ….but selling to whom ? how do i get the customer to sell?

is it necessary to sell ?

if i dont sell but want to withdraw what will happen ?

very much confused.
——————————————-
can you please clarify my some more doubts ?

which is better mode of investment ?

(1)with dividend or without dividend ?
(2)close ended or open ended ?
————————————–

i have also read a fact , that suppose you invested some mone to a MF fund company. but the MF company ruined and could not survive….thats means, you are not getting any profit…right ? your money is gone….correct ?

well ok….but the most stunning fact and dangerous thing i have read is that you have to sell your furnitures,TVs,Computers and other household things to pay off the MF company . because , they say,…you too have the liability as the company ruins so you also ruin.

is this fact true ?

audidriver79 asked:


I have some settlement money (about $28K) that I would like to invest. Everyone tells me to put it in a mutual fund. Can someone explain to me what exactly a mutual fund is? Will I be able to cash it out whenever, or do I have to keep it in for a certain number of years? Can I buy a mutual fund through Scottrade? What’s the best mutual fund?

ratmforever asked:


Is it wise to invest in different mutual fund companies or just one company for maximum returns? My reason is that in case Company A fails, I still have a backup with other companies.

What is your opinion on this, will it matter if I invest in different companies? What are the chances that a mutual fund company will actually fail/close?
About diversification: isn’t mutual funds already in itself diversification?

Yardbird asked:


I keep reading on morningstar and other finance sites about how “such and such a mutual fund is getting too bloated with assets,” and that this is especially a problem for funds that focus on small-cap stocks. And I see that Vanguard and many other companies have closed funds to new investors–even Vanguard’s Windsor II, which focuses on huge corporations, has restricted new investors. Let’s say a mutual fund purchases more that 50% of a company, why is that bad? Isn’t that what Warren Buffet’s Berkshire Hathaway does?