Mutual Funds
Mutual funds are an easy, convenient way to invest, without having to worry about choosing individual stocks. A mutual fund can be defined as a single portfolio of stocks,bonds, and/or cash managed by an investment company on behalf of many investors. The investment company manages the fund, and sells shares in the fund to individual investors. When one invests in a mutual fund, they become a part-owner of a large investment portfolio, along with all the other shareholders of the fund. The fund manager invests the contributions when shares are purchased, along with money from the other shareholders. Every day, the fund manager counts up the value of all the fund's holdings, figures out how many shares have been purchased by shareholders, and then calculates the net asset value(NAV) of the mutual fund, which is the price of a single share of the fund on that day. If the fund manager is doing a good job, the NAV of the fund will usually get bigger and the shares will be worth more. There are a couple of ways that a mutual fund can make money in its portfolio. A fund can receive dividends from the stocks that it owns. Also, the fund might have money in the bank that earns interest, or it might receive interes
. . .
Some common words found in the essay are:
Germany Equity-fund, Funds Mutual, Social Index, Peter Lynch's, Asset Value, mutual funds, mutual fund, fund manager, large-cap stocks, stocks bonds, funds reduce, funds specialize, Magellan Fund, fund domini fund, shares purchased, net asset, funds reduce risk, day fund, day fund manager, funds funds specialize,
Approximate Word count = 1262
Approximate Pages = 5 (250 words per page double spaced)
|
 |
