It pools the money of people, with the same investment objectives, through the issuance of shares.
The resulting size of the fund allows it to invest in a basket of securities.
It managed by a full-time professionals.
Investors in a mutual fund are considered part owners or shareholders of the fund.
Shareholders are entitled to a proportionate share in investment income and risk explosure.
Each represents a proportionate ownership in all the funds underlying securities.
Earnings in a mutual fund are based on Net Asset Value Per Share (NAVPS).
A mutual fund is an investment vehicle that pools together the funds of various investros both individuals and corporation. The ppol of funds is managed by a professional fund manager who uses the funds to create a diversified investment portfolio consisting of various investment instruments such as stock and bonds.
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