A mutual fund refers to a type of investment where thousands of investors pool together funds in order to do business and make a profit.
The managers who run these funds are qualified to deal with securities and are registered under the securities exchange Act.
They Are required by law to be of high moral standard in order to raise investor confidence.
All mutual funds are required to be registered under the Investment Company Act of 1940, which regulates and monitors their activities in order to build investor confidence.
They are also guided by the Securities Exchange Act of 1934, which monitors the activities of the fund advisers and shields investors from undesired trading activities regarding the securities.
The act requires that stock exchanges, dealers, listed securities and brokers to publicly release their trading results every financial year.
There are two types of fees associated with mutual funds investments, one of them is referred to as the shareholder fees which is charged when an investor makes a purchase or decides to sell off his investment.
These fees are usually charged at the time of making an investment.
The other type of fees are the operating expenses, which include salaries and other investment operating costs.
The fund shares are traded in large chunks and the prices are determined at the end of each business day.
The profit or losses made are then distributed across the whole portfolio.
The share you will get as an investor will be dependent on the number of the shares across the divide.
The beauty of these funds is that, you can own a part of every blue chip company across the globe and feel safe since the risk is spread evenly across the globe.
The managers who run these funds are qualified to deal with securities and are registered under the securities exchange Act.
They Are required by law to be of high moral standard in order to raise investor confidence.
All mutual funds are required to be registered under the Investment Company Act of 1940, which regulates and monitors their activities in order to build investor confidence.
They are also guided by the Securities Exchange Act of 1934, which monitors the activities of the fund advisers and shields investors from undesired trading activities regarding the securities.
The act requires that stock exchanges, dealers, listed securities and brokers to publicly release their trading results every financial year.
There are two types of fees associated with mutual funds investments, one of them is referred to as the shareholder fees which is charged when an investor makes a purchase or decides to sell off his investment.
These fees are usually charged at the time of making an investment.
The other type of fees are the operating expenses, which include salaries and other investment operating costs.
The fund shares are traded in large chunks and the prices are determined at the end of each business day.
The profit or losses made are then distributed across the whole portfolio.
The share you will get as an investor will be dependent on the number of the shares across the divide.
The beauty of these funds is that, you can own a part of every blue chip company across the globe and feel safe since the risk is spread evenly across the globe.