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yahooanswers | What is "Mutual fund" in simple term? Thanks.? |
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bob shark
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A mutual fund is a collection of investment instruments that is packaged together and sold to the investing public as shares in the collection. |
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jautomatic
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it is a way for a lot of small investors to pool their money to buy a wide range of stocks. |
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ffulbon
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A grouping of many stocks into one. To own one stock you must buy at least one share at the current price. In a mutual fund you put in what money you can and it purchases partial (or whole) shares of multiple companies. Say you have $500 you want to put in the market and to make it simple say every companies stock costs $100 per share. Without a mutual fund you can buy 5 shares of one company or 1 share in a maximum of 5 companies. If you have a mutual fund that consists of 50 companies, your $500 buys you one tenth of a share in each of the 50 companies, thus diversifying your money. |
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Dr. B
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http://en.wikipedia.org/wiki/Mutual_fund
The opening of that article gives a fairly good explanation of what a mutual fund is. Basically its just a bunch stocks, bonds, or other investments that are highly diversified and have been put together in a portfolio to create a low risk investment that over a long period of time can create a very nice return. |
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$so fresh so clean$
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an investment vehicle that pools the money of investors and gives it to a manager to decide where to invest it. Low fees, instant diversification. |
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Janvie ♥
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A mutual fund is a professionally-managed form of collective investments that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities.[1] In a mutual fund, the fund manager, who is also known as the portfolio manager, trades the fund's underlying securities, realizing capital gains or losses, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value per share (NAV), is calculated daily based on the total value of the fund divided by the number of shares currently issued and outstanding |
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piyush h
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Mutual means virtual that is not apearable but it is there,, so, it's like tacit, not said but understood with mutual understanding by both parties. That means you are investing money in mutual fund, You may not have any visible solid money as your property or credit, It will be as invisible form it's size or amount will not be confirm, It will depend on stock market sensex etc.. |
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Pitty T
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These funds offer a varied investment opportunity for the shareholders who have bought the fund’s shares. They are an effective method of building a varied investment portfolio, or they can augment your existing portfolio with securities chosen by the mutual fund manager. Refer to this guide about detailed explanation of the mutual funds.
http://debts-to-wealth.com/category/Guide-to-Mutual-Funds.html |
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