Mutual Funds

mutual funds:

Legally known as an "open-end company", a mutual

fund is one of three basic types of investment companies available in the United States.[2] Outside of the U.S.

Mutual fund is a generic term for various types of collective investment. In the UK and western Europe

usage of mutual funds:

Mutual funds can invest in many different kinds of securities. The most common are cash, stock, and bonds, but there are hundreds of sub-categories.

. A mutual fund is administered through a parent management company, which may hire or fire fund managers.

Mutual funds are subject to a special set of regulatory, accounting, and tax rules. Unlike most other types of business entities, they are not taxed on their income as long as they distribute substantially all of it to their shareholders.

types of mutual funds: open end fund:

The term Mutual fund is the common name for an open-end investment company. Being open-ended means that at the end of every day, the investment management company sponsoring the fund issues new shares to investors and buys back shares from investors wishing to leave the fund.

Other funds have a limited number of shares; these are either closed-end fund or unit investment trusts neither of which are mutual funds.

exchange trade fund:

A relatively new innovation, the exchange traded fund (ETF), is often formulated as an open-end investment company. The way ETFs work combines characteristics of both mutual funds and closed-end funds.

Investors typically purchase shares in small quantities through brokers at a small premium or discount to the net asset