Mutual Fund

• Mutual Fund


  An investment company that pools the funds of many individual and institutional investors to form a massive asset base
• Mutual Fund


  • The assets are entrusted to a full-time professional fund manager who develops and maintains a diversified portfolio of security investments
  • People who buy shares of a mutual fund are its owners or shareholders
  • Their purchases provide the money for a mutual fund to buy securities such as stocks and bonds
• How a Mutual Fund makes money

  1. A security can pay dividends and interest to the fund

  2. A security can rise in value

  3. The fund passes any dividends, interest or profits on the sale of its portfolio securities, less fund expenses, to shareholders in the form of distributions