Professional Documents
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What Is A Mutual Fund?
What Is A Mutual Fund?
Mutual Fund?
What is a Mutual Fund?
• A mutual fund is a pool of money managed by a professional
money manager.
2 Back-end load: An investor doesn't pay an initial fee, but they are locked
into the fund family for a predetermined period of time (outlined in the
prospectus). If the investor holds the fund to "maturity"of the "contract,"
they will never pay a fee. But, if they choose to redeem early, they will
have to pay a redemption fee, which decreases on a percentage basis
every year the fund is held.
2 Bond Funds
3 Balanced Funds
4 Dividend
5 Equity Funds
6 Specialty Funds
What is a Money Market Fund?
• This type of fund's main objective is to hold investment
instruments that are liquid and secure. This type of fund is
usually held on a short-term basis, and the NAV is often fixed at
$10. Examples: Treasury bills, banker's acceptances, and short
term notes.