MUTUAL FUND
Mutual fund form of management investment company that combines the money of its shareholders and invests those funds in wide variety of its shareholders and invests those funds in a wide variety of stocks,bonds and so called money market instruments.The latter include short-term investments such as united states treasury bills and other federal securities,commercial paper and and bank certificates of deposit. .Mutual fund provide the investor with professional management of funds and diversification of investment among the securities offered by leading corporations,federal and state governments and other entities.
Most mutual funds are closed as open end finds,meaning that the fund will redeem outstanding shares immediately upon request.Thus the number of shares of a given mutual fund is not fixed but fluctuates as new shares are sold to investors and outstanding shares are redeemed..The offering price and redemption price of an open end fund are based on the market value of the securities in its portfolio.
In addition varying charges called loads may be applied the offering price may include a front-end load,generally to cover the commission to the broker or other sales representative load may be subtracted from the redemption price often at a rate that progressively decreases the longer the shares are held.
Closed -end funds generally have a fixed number of shares outstanding and are traded on over the counter market or in some instances on stock exchanges shares are purchased and sold at the market price plus a commission .They sell at a premium ,that is above the value value of their assets or at a discount,below the value of their assets..
Mutual funds are classified according to their investment objectives.Broadly stated,funds seek growth of capital or stability of capital or current income.Within these classifications lies a multitude of variations such as money market,growth and income funds and other funds.
Open-end mutual funds may be sold by securities dealers,brokers,financial planners,or by a sales staff employed by the fund management or directly by the fund to the investors closed-end funds carries no sales charge or a low one are called no load or low load.
in 2003 the worst scandal in the recent history of the u.s mutual fund industry began to unfold.in early 2004 the scandal sec proposed new rules to help curb these and other abuses in the mutual fund industry.
About 95 million people had invested about $ 7 million in the u.s. mutual fund industry.
Mutual fund form of management investment company that combines the money of its shareholders and invests those funds in wide variety of its shareholders and invests those funds in a wide variety of stocks,bonds and so called money market instruments.The latter include short-term investments such as united states treasury bills and other federal securities,commercial paper and and bank certificates of deposit. .Mutual fund provide the investor with professional management of funds and diversification of investment among the securities offered by leading corporations,federal and state governments and other entities.
Most mutual funds are closed as open end finds,meaning that the fund will redeem outstanding shares immediately upon request.Thus the number of shares of a given mutual fund is not fixed but fluctuates as new shares are sold to investors and outstanding shares are redeemed..The offering price and redemption price of an open end fund are based on the market value of the securities in its portfolio.
In addition varying charges called loads may be applied the offering price may include a front-end load,generally to cover the commission to the broker or other sales representative load may be subtracted from the redemption price often at a rate that progressively decreases the longer the shares are held.
Closed -end funds generally have a fixed number of shares outstanding and are traded on over the counter market or in some instances on stock exchanges shares are purchased and sold at the market price plus a commission .They sell at a premium ,that is above the value value of their assets or at a discount,below the value of their assets..
Mutual funds are classified according to their investment objectives.Broadly stated,funds seek growth of capital or stability of capital or current income.Within these classifications lies a multitude of variations such as money market,growth and income funds and other funds.
Open-end mutual funds may be sold by securities dealers,brokers,financial planners,or by a sales staff employed by the fund management or directly by the fund to the investors closed-end funds carries no sales charge or a low one are called no load or low load.
in 2003 the worst scandal in the recent history of the u.s mutual fund industry began to unfold.in early 2004 the scandal sec proposed new rules to help curb these and other abuses in the mutual fund industry.
About 95 million people had invested about $ 7 million in the u.s. mutual fund industry.
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