Mutual Funds

Paper Summary:

This paper provides an overview of mutual funds, investment vehicles that pool the money of thousands of investors to invest in a wide variety of securities with a specific objective. It discusses how mutual funds provide professional management and diversification and, because of this, are safer and less volatile than individual stocks or bonds. It examines how different classes of mutual funds have different objectives, such as growth, growth and income, income, etc. and how the mutual fund or funds that investors select reflect their objectives and tolerance for risk.

Table of contents:
Introduction
Types of Mutual Funds
Mutual Fund Fees
Distributions and Their Tax Consequences
Kinds of Funds Available
My Investment Options
Conclusion
Bibliography

From the Paper:

"Generally, there are two types of mutual funds. The first type is called an "open-ended" fund. In an open-ended fund, the fund does not have a set number of shares. It will continue to issue shares as long as investors will buy them. Investors can also redeem shares. At the end of each trading day, the fund manager will calculate the net asset value (NAV) of the fund. The NAV is the total value of the assets held by the fund divided by the total number of fund shares. Shares are purchased or redeemed on the basis of the NAV. "

More papers on Mutual Funds:

• Essay # 70923 : "Closed-End Mutual Funds"
• Essay # 36373 : "Mutual Funds Vs Common Stock"
• Dissertation or Thesis # 91950 : "Tiger Global and Mutual Funds"
• Research Paper # 55935 : "International Mutual Funds"

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