Know nothing about mutual funds- plz help!?

Question

i just started with mutual funds about 3 weeks ago with my banks advisor. Anyways, i check it today and it says my market value is down about $500 but on the book value side it says its up $35... anyone know how this works?

thanks

Answer 1

www.mfea.com

Answer 2

Mutual Funds is like getting a whole bunch of people together and investing in a group of companies.  If business is good the price will go up, if its bad then it will go down.  Usually investing in Mutual Funds is for long term growth (5 years or more).  You cant panic if you see your account down.  The market fluctuates everyday.  I'd say if after a year your account still doesn't look good talk to your advisor.  Maybe its better if you sell now even though you loose some money.  You maybe avoiding loosing even more.

Answer 3

It is possible that the stocks you own paid dividends (leading to higher book value). The more relevant number, which is market value, reflects the latest prices that you would get if you were to sell your investments.

Answer 4

Hi,

You'll sure learn a lot about mutual funds on this blog:

http://where-to-invest.blogspot.com/sear...

Answer 5

expenses when you bought the fund?