What is a mutual fund? how does it work?

Question

any help would be greatly appreciated, thanks :D

Answer 1

A perfessionally managed portfolio of stocks bonds or other investments divided up into shares. Minimum purchase is sometomes 500 or less and mutual funds stand ready to buy back thier shares at and time.  The market price of the funds shares called NAV ( net asset value) flucuate daily with the market price of securities in its portfolio

Answer 2

http://www.greenjungle.com/pub/education...

Answer 3

An entity that is registered with the Securities & Exchange Commission whose purpose is invest and trade securities for a group of people who will share in the dividends or income earned from interest and who, after management fees, will distribute all trading profits/losses and/or investment gains/losses to the company's holder.

So it's a company that pools investors’ monies for the purposes of buying and selling securities to make trading profits and/or collect dividends and interest in which the investors will share in.

For this service, the fund company will charge a fee and this fee will be deducted before they will distribute any monies to the holders

You should visit MSN Money http://moneycentral.msn.com/home.asp click on the "investing" tab, you will see tabs for Mutual Funds and ETF.  You should make yourself familar with both products

You can also visit Morningstar http://www.morningstar.com/ which is a rating service for funds.  But they have tutorials which will be a help to you

Answer 4

Lots of folks get together and pool their money. Then an investment broker goes out and buys a portfolio with the large sum of money- stocks, bonds, treasury bonds, etc. If he's a good broker, you all get your percentage of the profits in the end. There's no way I can invest $200,000 myself, but with a crows of folks, we can!