A mutual fund company is an investment company that
receives money from investors for the sole purpose to invest in stocks,
bonds, and other securities for the benefit of the investors. A mutu
inal fund is the portfolio of stocks, bonds, or other securities that
generate profits for the investor, or shareholder of the mutual fund. A
mutual fund allows an investor with less money to diversify his holdings
for greater safety and to benefit from the expertise of professional
fund managers. Mutual funds are generally safer, but less profitable,
than stocks, and riskier, but more profitable than bonds or bank
accounts, although its profit-risk profile can vary widely, depending on
the fund's investment objective.Most mutual funds are open-end funds,
which sells new shares continuously or buys them back from the
shareholder (redeems them), dealing directly with the investor (no-load
funds) or through broker-dealers, who receive the sales load of a buy or
sell order. The purchaseC price is the net asset value (NAV) at the end
of the trading day, which is the total assets of the fund minus its
liabilities divided by the number of shares outstanding for that day.
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