Dictionary
Financial Glossary
|
 |
| Glossary
> M
> "Mutual fund" Definition |
 Mutual fund
Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investors money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.
In the US, a collective investment scheme, operated by an investment company, which enables small private investors to invest in a diversified portfolio of shares, bonds and other securities.It is known as an open end fund since there is no fixed amount of capital in the fund. If new investors want to invest in the fund, it can issue new units and accept their money into the pool. If they want to turn their investment back into cash, it can cancel their units. The number of units in the fund, and the amount of money invested, goes up and down according to supply and demand.Funds are managed by professional fund managers who invest in securities to achieve the trust"s objectives such as capital growth, income or a combination of both. Shares purchased from brokers are called load funds and those purchased direct from the fund company are called no load funds. Shares when sold are redeemed at their net asset value. There is a wide range of funds with a variety of objectives available in which to invest including capital growth and income. Similar to a unit trust in the UK.
|
|
Glossary 
|
|
|
|
Dictionary
|
|
Mutual fund - Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investors money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund.
In the US, a collective investment scheme, operated by an investment company, which enables small private investors to invest in a diversified portfolio of shares, bonds and other securities.It is known as an open end fund since there is no fixed amount of capital in the fund. If new investors want to invest in the fund, it can issue new units and accept their money into the pool. If they want to turn their investment back into cash, it can cancel their units. The number of units in the fund, and the amount of money invested, goes up and down according to supply and demand.Funds are managed by professional fund managers who invest in securities to achieve the trust"s objectives such as capital growth, income or a combination of both. Shares purchased from brokers are called load funds and those purchased direct from the fund company are called no load funds. Shares when sold are redeemed at their net asset value. There is a wide range of funds with a variety of objectives available in which to invest including capital growth and income. Similar to a unit trust in the UK.
Mutual fund : mutual funds are pools of money that are managed by an investment company. they offer investors a variety of goals, depending on the fund and its investment charter. some funds, for example, seek to generate income on a regular basis. others seek to preserve an investors money. still others seek to invest in companies that are growing at a rapid pace. funds can impose a sales charge, or load, on investors when they buy or sell shares. many funds these days are no load and impose no sales charge. mutual funds are investment companies regulated by the investment company act of 1940. related: open-end fund, closed-end fund.
in the us, a collective investment scheme, operated by an investment company, which enables small private investors to invest in a diversified portfolio of shares, bonds and other securities.it is known as an open end fund since there is no fixed amount of capital in the fund. if new investors want to invest in the fund, it can issue new units and accept their money into the pool. if they want to turn their investment back into cash, it can cancel their units. the number of units in the fund, and the amount of money invested, goes up and down according to supply and demand.funds are managed by professional fund managers who invest in securities to achieve the trust"s objectives such as capital growth, income or a combination of both. shares purchased from brokers are called load funds and those purchased direct from the fund company are called no load funds. shares when sold are redeemed at their net asset value. there is a wide range of funds with a variety of objectives available in which to invest including capital growth and income. similar to a unit trust in the uk.
