In this chapter we will discuss on the following topics:-
What Is a Mutual Fund?
Assets, Expenses, and Outstanding Shares
Value of a Mutual Fund Share
Other Mutual Fund Concepts
Mutual funds are actually quite simple in nature, and yet present a significant challenge when it comes to providing one all-encompassing definition. To illustrate this, below is a “working definition”, followed by several others borrowed from various sources.
A mutual fund is a type of investment in which many individuals pool their cash into a “fund” which is then professionally managed on their behalf.
“A mutual fund is a large pool of investment money from lots and lots of people.”
“A mutual fund is a collection of stocks, bonds, or other securities purchased by a group of investors and managed by a professional investment company.”
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