A mutual fund company is an investment
company that receives money from investors for the sole purpose to
invest in stocks, bonds, and other s
ecurities 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 day
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DIVADANDI E MAGAZINE
