What Are Mutual Funds?????????

Answer 1

Mutual Fund Basics


What is a mutual fund?
A mutual fund is a pool of investments managed by professional money managers. When you invest in a mutual fund, you're actually pooling your money with other people who have similar investment goals. An expert called a portfolio manager invests that money on behalf of the whole group. If the investments make money, everyone shares in it. If the investments lose money, the whole group shares in the loss.

Mutual fund companies keep track of your share of the pool by selling mutual funds in units. The more you invest, the more units you own and the bigger your share of the fund's income, gains and losses. As a unitholder, you also pay a share of the fund's expenses.

Mutual funds come in many varieties that are designed to meet the differing needs of investors. A fund could hold investments like stocks, bonds, cash, derivatives or some combination of these, depending on its investment objective.

The value of these investments can go up or down. They're affected by things like changes in interest rates or exchange rates, economic conditions in Canada or abroad, or news about the companies the fund invests in. When the value of the investments changes, it can make the price of the mutual fund units rise or fall. That's why mutual fund investments can increase or decrease in value after you buy them.

Answer 2

Mutual Funds - Funds or money that both the husband and wife have an equal part in, that is I do my part by putting the money in and she does her part by pulling the money out. Mutual Funds - LOL

Answer 3

Here's an answer from Wikipedia. Please read it over:

http://en.wikipedia.org/wiki/Mutual_fund

My answer is: an investment pool that reduces risk by investing in many securities.

Answer 4

read FAQ on rediff > pr finance

more links on my blog