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2006-09-28 19:05:09 · 3 answers · asked by king m 2 in Education & Reference Financial Aid

3 answers

Mutual fund is essentially pooling of money from all investors and collectively investing in shares. The value of mutual fund is the weighted average value of all shares that are held by the mutual fund.

2006-09-28 19:24:50 · answer #1 · answered by erossfun 1 · 0 0

SHARES

A share is simply a part-ownership of a company. If, for example, a company has issued a million shares, and you own ten thousand shares in it, then you own one per cent of the company. As a part-owner of a company, you are investing in the management of the company. You should invest in companies you feel confident are well run.

WHEREAS MUTUAL FUND

A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. [1] In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, 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 (NAV), is calculated daily based on the total value of the fund divided by the number of shares purchased by investors.

Legally known as an "open-end company", a mutual fund is one of three basic types of investment companies available in the United States. [2] Outside of the U.S. (with the exception of Canada which follows the US model), mutual fund is a generic term for various types of collective investment. In the UK and western Europe (including offshore jurisdictions) other forms of collective investment are prevalent including unit trusts, Open-Ended Investment Companies (OEICs), SICAVs and unitized insurance funds

2006-09-29 03:38:13 · answer #2 · answered by Angel for Baby 2 · 0 0

Mutual all the profits are ploughed back in - share all the profits go to the shareholders

2006-09-29 02:13:39 · answer #3 · answered by cool_clearwater 6 · 0 0

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