The Mutual fund
Mutual funds offers you the opportunity to invest
in a portfolio of securities. Mutual Funds are investment companies
investing in a portfolio of assets. The fund's shareholders are the
owner of the company.
Open-end funds
When you buy fund shares, you buy directly with the fund, new shares
are issued. When you sell your shares, you sell them to the fund and
they are cancelled.
Close-end funds
When the fund has a fixed number of shares outstanding, you must buy
them form an existing shareholder.
Considering the number of mutual funds available,
understanding their features is critical. You will find the various
funds classified to help choose and evaluate the appropriate fund.