How does Mutual Fund companies invest in stocks... How long they invest in one script & change...?

They are wholesale buyers and sellers of stocks, bonds and short term cash investments. They have special methods of disposing off stock, or buying 100K shares of Reliance!

They invest as long as their model tells them to hold. ALthough most funds will try to hold over the 1 year limit otherwise they have to declare it as a short term gain. A lot of investors do not like that.

In the US, the fund industry has gone crazy with over 10,000 mutual fund. There also over 500 ETFs not, and ETFs are the new version of Mutual Funds, and they are called XTFs. There will be 1000 to 2000 more by 12/2008.

KKP

not all in stk some r for FD
few 4 both

ratio of tradingby MF called churing ration

more on sunidhi.com & my blog

go 4 index future

depending market condition and componies perfomance

Different mutual funds have different investment philosophies, so you have to understand this.

A bond fund doesn't buy equities

other than that, philosophy can be...
to pay an income
to grow in value
to buy specific sectors (gold) (Resources) (housing)
to buy only blue chip companies
To buy only Noth American Stocks
To buy world stocks
To buy only asian stocks

the list is endless, but they research companies within their philosophy and buy the ones they like, they usually have rules that limit the % that a certain stock can make up their total investment.

When they think other stocks are better value than some they own, they sell one and buy the other.