Cue a collection of high-wattage necklaces, adorned with nugget and crystals wild-cat cocktail rings, abstract drop earrings, and spectacular statement chokers inspired by the flora and fauna of safari.
A mutual fund is an investment vehicle that pools together the funds of various investors—both individuals and corporations. The pool of funds is managed by a professional fund manager who uses the funds to create a diversified investment portfolio consisting of various investment instruments such as stocks and bonds.
Mutual Fund Quick Facts
- It pools the money of people, with the same investment objectives, through the issuance of shares.
- The resulting size of the fund allows it to invest in a basket of securities.
- It is managed by full-time professionals.
- Investors in a mutual fund are considered part owners or shareholders of the fund.
- Shareholders are entitled to a proportionate share in investment income and risk exposure.
- Each share represents a proportionate ownership in all the fund’s underlying securities
- Earnings in a mutual fund are based on Net Asset Value Per Share (NAVPS)