A mutual fund company is an investment company that receives money from
investors for the sole purpose to invest in stocks, bonds, and oher
securities for the benefit of the investors. A mutual is the portfolio
of stocks, bonds, or other securities that generate profits for the
investor, or shareholder of the mutual fund. A mutual fund allows an
investor with less money to diversify his holdings for greater safety
and to benefit from the expertise of professional fund managers. Mutual
funds are generally safer, but less profitable, than stocks, and
riskier, but more profitable than bonds or bank accounts, although its
profit-risk profile can vary widely, depending on the fund's investment
objective.Most mutual funds areopen-end funds, which sells new
shares continuously or buys them back from the shareholder (redeems
them), dealing directly with the investor (no-load funds) or through
broker-dealers, who receive the sales load of a buy or sell order.The
purchase price is the net asset value (NAV) at the end of the trading
day, which is the total assets of the fund minus its liabilities divided
by the number of shares outstanding for that dayJoin Our Gujarat Rojgar Telegram Channal :- Click here
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