| http://www.davidcole.net/mutual_funds/money.html |
|
|
Ads by GoogleSection IndexWhat are mutual funds? History of mutual funds How mutual funds earn money Professional management Mutual funds ranking Mutual fund share classes Mutual fund prospectus Mutual fund annual report Mutual funds vs. other investments Advantages of mutual funds Disadvantages of mutual funds Types of mutual funds Load vs. no-load funds Mutual fund fees Distribution of capital gains and dividends Mutual fund taxation Recent scandals |
Mutual FundsHow Mutual Funds Earn MoneyA mutual fund is a means of investing that enables individuals to share the risks of investing with other investors. All contributors to the fund experience an equal share of gains and losses for each dollar invested. A mutual fund owns the securities of several corporations. A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to the kind of investments the mutual fund trades. Investors purchase shares in the mutual fund as if it was an individual security. Fund managers hired by the mutual fund company are paid to invest the money that the investors have placed in the fund. Heeding the adage "Don't put all your eggs in one basket" the holders of mutual fund shares are able to gain the advantage of diversification which might be beyond their financial means individually.
This is general information only and is not investment advice.
|
Ads by Google |
| © 2000 - 2008 David Cole |
|
home · miscellaneous |