Unit trust; a common type of collective investment vehicle.... more on: Mutual funds
A professionally managed group of investment accounts are called mutual funds. These funds provide the opportunity to diversify investments toward the goal of long- term financial gain. Fund companies may have different plans that allow the investor to emphasize investment returns such as growth, growth and income, or income only. Funds may also be directed at a particular type or area for investment such as bonds, money market funds, or overseas investments; some may be tax-free.
A security that gives small investors access to a well-diversified portfolio of shares, bonds, and other securities. Each shareholder participates in the gain or loss of the fund. Shares are issued and can be redeemed as needed.
Are pools of money managed by professionals. Mutual funds may invest in a wide diversity of securities.
Invented in the 1920s, mutual funds are pools of money managed by an investment company or advisor. Different mutual funds have different goals. For example, funds may seek growth, growth and income, specific market cap sizes, sectors, etc.
Mutual funds are usually two types i.e. close-ended and the open-ended. Shares of close-ended funds are listed on CASE, are readily transferable in the open market and are bought and sold like shares of stock. Open-ended funds sell their own new shares to investors, stand ready to buy back their old shares, and are not listed. Open-end funds are so called because their capitalization is not fixed; they issue more shares as people want them.
Types of investment funds that raise money from shareholders to invest in a group of assets such as stocks, bonds, and money market funds. Mutual Funds often have a minimum investment amount and a series of fees associated with them.
A publicly held open end investment company which will redeem its shares at net asset value at any time
a collection of stocks, bonds or other securities owned by a group of investors and managed by a professional investment company
a form of management-investment company that combines the money of its shareholders and invests those funds in a wide variety of stocks, bonds, and so-called money market instruments
an institution established with the intention of investing a pool of funds in various type of Securities for the benefit of investors
An investment company/trust that pools money from unitholders and invests that money into a variety of securities, including stocks, bonds, and money-market instruments as defined in the offer document of the specific mutual fund.
Mutual funds are comprised of securities in a variety of industries and companies. Each investor within the fund owns interest in each security which allows for investment diversification.
see Asset Management
A type of managed investment company in which the investor owns a share of the portfolio assets equal to his number of shares in the fund. ominee: As related to securities, one designated to act for another as his representative in a limited sense; for example, stock held by a brokerage firm in street name to facilitate transactions even though the customer is the actual owner of the securities.
An investment company that pools money from its unitholders and invests that money into a variety of securities, including stocks, bonds, and money-market instruments. This represents a way of investing money into a professionally managed and diversified pool of securities that hopefully will provide a good return on unitholders' money.
A professionally managed pool of money. The pool of money (capital) is accumulated when a group of investors buy units (shares) of the fund. This capital is then invested by a professional money manager according to the fund's specific investment policies and objectives.
fund operated by an investment manager which raises money from share holders and invests the collective money in stocks, bonds, currencies or futures.
An investment company that continually offers new shares and stands ready to redeem existing shares from the owners. Because the shares are purchased directly from and are sold directly to the mutual fund, there is no secondary market in these companies' stock. Individual mutual funds vary substantially in terms of the types of investments, their sales charges (many have none), and their management fees.
These are open-end funds that are not listed for trading on a stock exchange and are issued by companies which use their capital to invest in other companies. Mutual funds sell their own new shares to investors and buy back their old shares upon redemption. Capitalization is not fixed and normally shares are issued as people want them.
investment tool that enable investors to pool their money and place under professional investment management. The manager makes the trades, realizing gain or loss, and collect the dividend or interest income.
An investment company in which one buys shares, with all capital used to invest in diversified securities of other companies.
A type of investment where a company pools investors' money and buys shares of stock in many companies. It does this by selling its own shares to the public.
A fund that pools the money of its investors to buy a variety of securities.
Mutual funds are financial intermediaries set up to receive your money, and then having received it, to make investments with the money. When you buy mutual fund shares, you are a shareholder -- an owner -- of that mutual fund, with voting rights in proportion to your ownership of the fund.
Pools of investment money, managed by professionals, and invested in a wide range of securities.
One method of spreading risk in equity investments. These funds hold relatively large ownership blocks in many companies and professionally manage the funds entrusted to them.
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Pooled funds from investors for investment by an investment company in shares of other companies, in accordance with a stated set of objectives. Unlike investment trusts mutual funds are open-end funds where the investor may redeem his/her shares at any time at the prevailing market price.
These are mutually owned funds invested in diversified securities. Shareholders are issued certificates as evidence of their ownership and participate proportionately in the earnings of the fund.
Collective investments, such unit trusts, that pool investors' money which the fund manager uses to buy shares in other companies. Unlike investment trusts, they're not quoted on the stock exchange and they're not allowed to borrow money for further investment. Investors buy units in the fund - the unit value being calculated on a daily basis.
special investment companies in which people pool their savings to diversify their investments. Net Income money earned after taxes are deducted.
See Collective Investment Schemes.
This is an investment vehicle allowing investors to purchase part of an entire portfolio of securities. Mutual fund portfolios can consist of equities, bonds or other investment securities. Funds can be actively managed or follow an index. The fund share price (NAV) fluctuates in function of the demand for the underlying securities within the fund and the fund itself, and is typically determined at the close of the day.
An open-ended fund operated by an investment company that raises money from shareholders and invests in a group of assets, in accordance with a set of objectives. Benefits include diversification and professional money management. Shares are issued and redeemed on demand. A closed-end fund, which has restrictions on who can invest in the fund, is often incorrectly referred to as a mutual fund, but is actually an investment trust.
An investment company that pools the money of many individual investors and uses it to buy a diversified portfolio of securities.
By almost any measure mutual funds, as an industry, have been a huge success. They are "pools" of money from millions of investors and trillions of dollars are invested in them. Funds are not the answer to every investment situation, however. They are particularly unsuited to volatile sectors or markets, where the manager is often forced to invest at the top when inflows are typically the highest, and sell at the bottom when there are often outflows. I won't pretend that private investment management is any kind of panacea to the problems of investing in mutual funds, but the more personal, individualized quality of a "managed account" certainly overcomes many of the problems inherent in mutual funds and appears to suit most investors with significant funds at their disposal.
A form of investment managed by a company that pools money from numerous shareholders and buys stocks, bonds and other types of securities. Each investor owns shares in the fund representing a percentage of all the assets the fund holds. Most funds are "open-ended," meaning they stand ready to buy back their shares on demand. ï¿1/2 ï¿1/2 N-O ï¿1/2 ï¿1/2
A fund operated by an investment company that pools the money of shareholders and invests in a portfolio of securities. These funds offer investors the advantages of professional management, diversification and liquidity. A management fee is charged for these services. back to the top
A mutual fund is a collection of stocks or bonds. This happens when a large number of people give their money to professionals, to manage and invest, with the aim of achieving a return. These qualified and experienced professionals invest in instruments according to the objective of the fund.
A trust or corporation formed to invest the funds it obtains from shareholders in diversified securities.