What is a Mutual Fund?
The idea behind a mutual fund is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds.
Every mutual fund has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets.
Please answer.
2007-02-25 00:39:43 · 6 answers · asked by mkb_2700 2 in Business & Finance ➔ Investing
You answered your own question. Is there supposed to be something else?
2007-02-25 00:52:06 · answer #1 · answered by jerry 5 · 1⤊ 0⤋
The idea behind a mutual fund is simple: Many people pool their money in a fund, which invests in various securities. Each investor shares proportionately in the fund's investment returns -- the income (dividends or interest) paid on the securities and any capital gains or losses caused by sales of securities the fund holds.
Every mutual fund has a manager, also called an investment adviser, who directs the fund's investments according to the fund's objective, such as long-term growth, high current income, or stability of principal. Depending on its objective, a fund may invest in stocks, bonds, cash investments, or a combination of these financial assets.
:) you have to agree with my answer.
2007-02-26 11:27:26 · answer #2 · answered by Anuj Paul Gosain -- India 2 · 0⤊ 0⤋
Ya, it looks like you have already answered your own questions. So I will try different answer then. Mutual fund is a fund that give mutual benefits between the investor and the company which provide this funds. I just simple answer and it sounds making sense to me.
I personally like mutual fund as it help me diversify my investment risk in the stock market.
There are many kinds of mutual funds which you can check it out from http://financialindependent.blogspot.com/search/label/Unit%20Trust
2007-02-26 01:39:15 · answer #3 · answered by ChampDog 3 · 0⤊ 0⤋
An investment company continually offers new shares and buys existingshares back at the request of the shareholder and uses its capital in diversified securities of other companies
2007-02-25 01:08:34 · answer #4 · answered by deepak c 2 · 0⤊ 1⤋
it is fund managed by professional group, they collect money from retail investor and invest in equity/ debt and try to maximise yr profit.
2007-02-25 00:45:05 · answer #5 · answered by dev 1 · 0⤊ 0⤋
you write every thing question and answer your self. what you want?
2007-02-25 00:49:53 · answer #6 · answered by keral 6 · 2⤊ 0⤋