2006-10-02 08:29:08 · 9 answers · asked by Anonymous in Business & Finance ➔ Investing
A mutual fund is an investment product that pools money from thousands of investors and then makes purchases of stocks, bond, reals estate and other investment devices.
The benefit is that you get more diversification and management with small amounts of money. I suggest checking out Yahoo Finance or Morningstar to learn more.
2006-10-02 08:33:47 · answer #1 · answered by PADRE 2 · 0⤊ 0⤋
Padre has the most consise answer, but let me elaborate just a little. There are several different types of mutual funds--more than several actually.
There are index funds that are unmanaged funds that track a particular index such as the S&P 500. In fact there are over a hundred such funds that track almost everything imaginable. These are popular at the moment because they have low expenses. But many do not have much of a track record and over time they may become less popular.
There are closed end funds that are traded like stocks. They issue shares and then use the proceeds to invest in stocks, bonds, and what have you. There are hundreds of these also. These have one advantage. They sometimes sell at a significant dicount to net assets. It is like buying stocks on sale.
There are open end funds that are sold directly by mutual fund companies. They trade at net asset value. Some have a front end sales fee of about 5% and some do not. There are thousands of these. They are very profitable for the mutual fund companies. Some are also profitable for investors. 70% are not.
2006-10-02 16:36:46 · answer #2 · answered by Anonymous · 0⤊ 0⤋
if u want to know the real meaning of mutual funds
they r try to make fools
what they do they collect money from u invest in market if they got 20% return in a month after investing
they give u a little bit may be its 2 % in a month than plz dont think to invest in mutual funds if u need my help than u just call me
RAJVINDER
EQUIRTY ADVISOR
09888225888
CHANDIGARH
2006-10-03 07:35:18 · answer #3 · answered by rajvinder 2 · 0⤊ 0⤋
Mutual fund are a large pool of resources which are invested by professional(AMCS) in a portfolio to optimise the returns for a given level of risk
Mutual funds therefore are investment vehicles which pool together investor money which is invested in accordance to a started objectives...........ARE U LUKING FOR ANY INVESTEMENTS? COS M WORKNG FOR A FINANCIAL INVESTMENTS ADVISORY SERVICES..
2006-10-03 01:10:42 · answer #4 · answered by priya j 1 · 0⤊ 0⤋
The US name for a unit trust.
An investment company that enables its shareholders to pool their funds for professional management as a single investment account.
A fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. These funds offer investors the advantages of diversification and professional management.
2006-10-02 15:32:17 · answer #5 · answered by Madina 2 · 0⤊ 0⤋
A pool of money invested by many small investor which is run by a professional.
Pros: Diversification, professionally operated
Cons: High fee for many funds, so check before you invest
2006-10-02 15:49:08 · answer #6 · answered by answerMePLS 2 · 0⤊ 0⤋
A pool of money managed by a fund manager.
2006-10-02 16:55:31 · answer #7 · answered by Anonymous · 0⤊ 0⤋
a legal way for banks,brokers,and other financial institutions to steal your money
2006-10-02 15:44:43 · answer #8 · answered by dhragtop 2 · 0⤊ 0⤋
Look up this answer :
http://in.answers.yahoo.com/question/index;_ylt=Aip6vmIekTuRmBpBFsimprO5HQx.?qid=20060614043020AAd7D1d
2006-10-02 22:21:15 · answer #9 · answered by cvrk3 4 · 0⤊ 0⤋