Open-end mutual fund redemptions (part 2)

80문장 0% 스페인어 번역 0명 참여 출처 : 칸아카데미
1 영상보기
영어 to
스페인어
2단 보기 1단 보기

Open-end mutual fund redemptions (part 2)

Let's continue with the story of Pete's mutual fund.

So let's say that a year goes by and that even after paying Pete the 1%, so it had $500 of assets under management, this whole assets under management a year later, let's say it goes to, like I mentioned at the end of the last video, $1,000.

So Pete either is really good at or really lucky, or a little bit of both.

So it goes to $1,000.

So let me draw it like this.

So now it is that $1,000, and it still has the same five investors here.

And I'm lucky enough to be one of them.

So here are the five investors.

Let me draw the shares.

So there's one, two, three, four, five shares.

Now, each of the shares - well, the $1,000 is called the NAV, or the net asset value.

So let me give you that piece of terminology, just means net asset value.

And so there's an NAV per share.

The NAV per share right over here is $200.

I just took the total NAV and I just divided it by the shares.

And what's special about an open-ended mutual fund is at the close, or at the end of every day, either new shares can be removed from the fund or could be created for the fund.

So in the first video, I showed how I wanted to buy into the fund so I bought a share.

And that increase the NAV.

And it also increased the number of shares.

He had to create a share for me to buy, he didn't sell me share that already existed.

So you can imagine, after this type of performance more people would want to buy shares.

So now they would have to buy in to make things fair at $200 per share, because that's the current NAV per share.

So let's say that five more people want to buy in at $200 per share.

So what Pete would do, or what this mutual fund - it's not Pete really, it's the corporation - it would create five new shares.

So one, two, three, four, five.

If there was only one person that day it would create one share that day.

If there was 10 people that they would create 10 shares that day.

And it could keep doing this.

And the NAV of each of these are $200.

So it gives the shares to each of these people.

And they had to contribute $200.

So essentially it puts another $1,000 into the pool that Pete can now manage.

And so now the total NAV for the fund is $2,000 now.

And Pete will get his 1% management fee off of this entire $2,000.

Now let's say that we fast forward a little bit.

We fast forward a little bit to let's say Pete starts having a not so good year.

So let's say we fast forward a year past that and Pete has a negative 10% return.

So if you started at $2,000, and that's when you include taking his management fee out, you start at $2,000, you lose 105 in one year.

So it goes down to $1,800.

Let me do this in a new color.

So now he's at $1,800.

It's not completely drawn to scale, but hopefully you get the idea.

So now he is at $1,800.

But you still have a total of 10 shares.

So let me do my best to draw the 10 shares.

So I have one, two, three, four, five, six, seven, eight, nine, 10.

These should be of equal size.

And now the NAV per share is going to be 1,800 divided by 10, or $180.

And let's say that I get a little bit freaked out by this recent performance.

And I have some other commitments with my money.

So I say Pete, you need to buy my share back from me.

So what Pete does is he would give me back $180.

So the total NAV would lose $180.

So it would go down to $180.

So we would take this out of it.

1,800 minus 180 is 1,620.

So now it is 1,620.

And they would buy back a share from me.

So they would cancel one of the shares.

But notice, the NAV per share does not change.

By me redeeming my share it does not change what happens to everyone else.

Now you have 1,620 divided by 9 shares, that should still get you to be $180 per share, if I did my math right.

So 1,800 minus 180 gets you 1,620.

It should still be one $180 per share.

But this is the nature of an open-ended fund.

You can keep creating shares and selling them to the public to raise more money.

Or when someone wants their money back you essentially buy the share back from them, give them their money when you buy it back, and you remove that share.

So an open-ended fund, really at the close of every trading day, can keep growing or shrinking.

It could be keep adding more and more investors.

Or their investors can take their money back.

What's difficult about this from the fund manager's point of view, is that they have to manage this.

They have to manage this constant buying and selling with the public.

They have to manage the paperwork.

And if you think about it, they can't have all of their money invested in relatively illiquid assets, or even in regular stocks.

They have to keep some amount of their money.

And it's usually like 3% to 5%.

They have to keep some of this $2,000 before he lost my money, they have to keep some of it in cash.

And from an investor's point of view, they would say, well, if I'm good at investing I should try to minimize the amount of cash that I have because I'm not getting return on cash.

But because it's open-ended, because investors might come by and say, hey, I want my money, you have to have a little bit of cash as part of the asset pool in order to be able to buy people's shares back.

번역 0%

Open-end mutual fund redemptions (part 2)발음듣기

다른 번역문 등록

Let's continue with the story of Pete's mutual fund.발음듣기

다른 번역문 등록

So let's say that a year goes by and that even after paying Pete the 1%, so it had $500 of assets under management, this whole assets under management a year later, let's say it goes to, like I mentioned at the end of the last video, $1,000.발음듣기

다른 번역문 등록

So Pete either is really good at or really lucky, or a little bit of both.발음듣기

다른 번역문 등록

So it goes to $1,000.발음듣기

다른 번역문 등록

So let me draw it like this.발음듣기

다른 번역문 등록

So now it is that $1,000, and it still has the same five investors here.발음듣기

다른 번역문 등록

And I'm lucky enough to be one of them.발음듣기

다른 번역문 등록

So here are the five investors.발음듣기

다른 번역문 등록

Let me draw the shares.발음듣기

다른 번역문 등록

So there's one, two, three, four, five shares.발음듣기

다른 번역문 등록

Now, each of the shares - well, the $1,000 is called the NAV, or the net asset value.발음듣기

다른 번역문 등록

So let me give you that piece of terminology, just means net asset value.발음듣기

다른 번역문 등록

And so there's an NAV per share.발음듣기

다른 번역문 등록

The NAV per share right over here is $200.발음듣기

다른 번역문 등록

I just took the total NAV and I just divided it by the shares.발음듣기

다른 번역문 등록

And what's special about an open-ended mutual fund is at the close, or at the end of every day, either new shares can be removed from the fund or could be created for the fund.발음듣기

다른 번역문 등록

So in the first video, I showed how I wanted to buy into the fund so I bought a share.발음듣기

다른 번역문 등록

And that increase the NAV.발음듣기

다른 번역문 등록

And it also increased the number of shares.발음듣기

다른 번역문 등록

He had to create a share for me to buy, he didn't sell me share that already existed.발음듣기

다른 번역문 등록

So you can imagine, after this type of performance more people would want to buy shares.발음듣기

다른 번역문 등록

So now they would have to buy in to make things fair at $200 per share, because that's the current NAV per share.발음듣기

다른 번역문 등록

So let's say that five more people want to buy in at $200 per share.발음듣기

다른 번역문 등록

So what Pete would do, or what this mutual fund - it's not Pete really, it's the corporation - it would create five new shares.발음듣기

다른 번역문 등록

So one, two, three, four, five.발음듣기

다른 번역문 등록

If there was only one person that day it would create one share that day.발음듣기

다른 번역문 등록

If there was 10 people that they would create 10 shares that day.발음듣기

다른 번역문 등록

And it could keep doing this.발음듣기

다른 번역문 등록

And the NAV of each of these are $200.발음듣기

다른 번역문 등록

So it gives the shares to each of these people.발음듣기

다른 번역문 등록

And they had to contribute $200.발음듣기

다른 번역문 등록

So essentially it puts another $1,000 into the pool that Pete can now manage.발음듣기

다른 번역문 등록

And so now the total NAV for the fund is $2,000 now.발음듣기

다른 번역문 등록

And Pete will get his 1% management fee off of this entire $2,000.발음듣기

다른 번역문 등록

Now let's say that we fast forward a little bit.발음듣기

다른 번역문 등록

We fast forward a little bit to let's say Pete starts having a not so good year.발음듣기

다른 번역문 등록

So let's say we fast forward a year past that and Pete has a negative 10% return.발음듣기

다른 번역문 등록

So if you started at $2,000, and that's when you include taking his management fee out, you start at $2,000, you lose 105 in one year.발음듣기

다른 번역문 등록

So it goes down to $1,800.발음듣기

다른 번역문 등록

Let me do this in a new color.발음듣기

다른 번역문 등록

So now he's at $1,800.발음듣기

다른 번역문 등록

It's not completely drawn to scale, but hopefully you get the idea.발음듣기

다른 번역문 등록

So now he is at $1,800.발음듣기

다른 번역문 등록

But you still have a total of 10 shares.발음듣기

다른 번역문 등록

So let me do my best to draw the 10 shares.발음듣기

다른 번역문 등록

So I have one, two, three, four, five, six, seven, eight, nine, 10.발음듣기

다른 번역문 등록

These should be of equal size.발음듣기

다른 번역문 등록

And now the NAV per share is going to be 1,800 divided by 10, or $180.발음듣기

다른 번역문 등록

And let's say that I get a little bit freaked out by this recent performance.발음듣기

다른 번역문 등록

And I have some other commitments with my money.발음듣기

다른 번역문 등록

So I say Pete, you need to buy my share back from me.발음듣기

다른 번역문 등록

So what Pete does is he would give me back $180.발음듣기

다른 번역문 등록

So the total NAV would lose $180.발음듣기

다른 번역문 등록

So it would go down to $180.발음듣기

다른 번역문 등록

So we would take this out of it.발음듣기

다른 번역문 등록

1,800 minus 180 is 1,620.발음듣기

다른 번역문 등록

So now it is 1,620.발음듣기

다른 번역문 등록

And they would buy back a share from me.발음듣기

다른 번역문 등록

So they would cancel one of the shares.발음듣기

다른 번역문 등록

But notice, the NAV per share does not change.발음듣기

다른 번역문 등록

By me redeeming my share it does not change what happens to everyone else.발음듣기

다른 번역문 등록

Now you have 1,620 divided by 9 shares, that should still get you to be $180 per share, if I did my math right.발음듣기

다른 번역문 등록

So 1,800 minus 180 gets you 1,620.발음듣기

다른 번역문 등록

It should still be one $180 per share.발음듣기

다른 번역문 등록

But this is the nature of an open-ended fund.발음듣기

다른 번역문 등록

You can keep creating shares and selling them to the public to raise more money.발음듣기

다른 번역문 등록

Or when someone wants their money back you essentially buy the share back from them, give them their money when you buy it back, and you remove that share.발음듣기

다른 번역문 등록

So an open-ended fund, really at the close of every trading day, can keep growing or shrinking.발음듣기

다른 번역문 등록

It could be keep adding more and more investors.발음듣기

다른 번역문 등록

Or their investors can take their money back.발음듣기

다른 번역문 등록

What's difficult about this from the fund manager's point of view, is that they have to manage this.발음듣기

다른 번역문 등록

They have to manage this constant buying and selling with the public.발음듣기

다른 번역문 등록

They have to manage the paperwork.발음듣기

다른 번역문 등록

And if you think about it, they can't have all of their money invested in relatively illiquid assets, or even in regular stocks.발음듣기

다른 번역문 등록

They have to keep some amount of their money.발음듣기

다른 번역문 등록

And it's usually like 3% to 5%.발음듣기

다른 번역문 등록

They have to keep some of this $2,000 before he lost my money, they have to keep some of it in cash.발음듣기

다른 번역문 등록

And from an investor's point of view, they would say, well, if I'm good at investing I should try to minimize the amount of cash that I have because I'm not getting return on cash.발음듣기

다른 번역문 등록

But because it's open-ended, because investors might come by and say, hey, I want my money, you have to have a little bit of cash as part of the asset pool in order to be able to buy people's shares back.발음듣기

다른 번역문 등록

칸아카데미 더보기더 보기

전체보기
Top