Mutual Funds
A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchasesecurities.[1] While there is no legal definition of mutual fund, the term is most commonly applied only to those collective investment schemes that are regulated, available to the general public and open-ended in nature. Hedge funds are not considered a type of mutual fund.
The term mutual fund is less widely used outside of the United States. For collective investment schemes outside of the United States, see articles on specific types of funds including open-ended investment companies, SICAVs, unitized insurance funds, unit trusts and Undertakings for Collective Investment in Transferable Securities.
In the United States, mutual funds must be registered with the Securities and Exchange Commission, overseen by a board of directors or board of trustees and managed by a registered investment advisor. They are not taxed on their income if they comply with certain requirements.
Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. They have a long history in the United States. Today they play an important role in household finances.
There are 3 types of U.S. mutual funds: open-end, unit investment trust, and closed-end. The most common type, the open-end mutual fund, must be willing to buy back its shares from its investors at the end of every business day. Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange. Open-end funds are most common, but exchange-traded funds have been gaining in popularity.
Mutual funds are classified by their principal investments. The four largest categories of funds are money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds may also be categorized as index or actively-managed.
Investors in a mutual fund pay the fund’s expenses. There is controversy about the level of these expenses. A single mutual fund may give investors a choice of different combinations of expenses by offering several different types of share classes.
The term mutual fund is less widely used outside of the United States. For collective investment schemes outside of the United States, see articles on specific types of funds including open-ended investment companies, SICAVs, unitized insurance funds, unit trusts and Undertakings for Collective Investment in Transferable Securities.
In the United States, mutual funds must be registered with the Securities and Exchange Commission, overseen by a board of directors or board of trustees and managed by a registered investment advisor. They are not taxed on their income if they comply with certain requirements.
Mutual funds have both advantages and disadvantages compared to direct investing in individual securities. They have a long history in the United States. Today they play an important role in household finances.
There are 3 types of U.S. mutual funds: open-end, unit investment trust, and closed-end. The most common type, the open-end mutual fund, must be willing to buy back its shares from its investors at the end of every business day. Exchange-traded funds are open-end funds or unit investment trusts that trade on an exchange. Open-end funds are most common, but exchange-traded funds have been gaining in popularity.
Mutual funds are classified by their principal investments. The four largest categories of funds are money market funds, bond or fixed income funds, stock or equity funds and hybrid funds. Funds may also be categorized as index or actively-managed.
Investors in a mutual fund pay the fund’s expenses. There is controversy about the level of these expenses. A single mutual fund may give investors a choice of different combinations of expenses by offering several different types of share classes.
Mutual Funds
Open-end fundsOpen-end mutual funds must be willing to buy back their shares from their investors at the end of every business day at the net asset value computed that day. Most open-end funds also sell shares to the public every business day; these shares are also priced at net asset value. A professional investment manager oversees the portfolio, buying and selling securities as appropriate. The total investment in the fund will vary based on share purchases, share redemptions and fluctuation in market valuation. There is no legal limit on the number of shares that can be issued.
Open-end funds are the most common type of mutual fund. At the end of 2010, there were 7,581 open-end mutual funds in the United States with combined assets of $11.8 trillion.[13]
[edit]Closed-end fundsClosed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Their shares are then listed for trading on a stock exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can with an open-end fund). Instead, they must sell their shares to another investor in the market; the price they receive may be significantly different from net asset value. It may be at a "premium" to net asset value (meaning that it is higher than net asset value) or, more commonly, at a "discount" to net asset value (meaning that it is lower than net asset value). A professional investment manager oversees the portfolio, buying and selling securities as appropriate.
Closed-end funds have been declining in popularity. At the end of 2010, there were 624 closed-end funds in the United States with combined assets of $241 billion.[13]
Open-end funds are the most common type of mutual fund. At the end of 2010, there were 7,581 open-end mutual funds in the United States with combined assets of $11.8 trillion.[13]
[edit]Closed-end fundsClosed-end funds generally issue shares to the public only once, when they are created through an initial public offering. Their shares are then listed for trading on a stock exchange. Investors who no longer wish to invest in the fund cannot sell their shares back to the fund (as they can with an open-end fund). Instead, they must sell their shares to another investor in the market; the price they receive may be significantly different from net asset value. It may be at a "premium" to net asset value (meaning that it is higher than net asset value) or, more commonly, at a "discount" to net asset value (meaning that it is lower than net asset value). A professional investment manager oversees the portfolio, buying and selling securities as appropriate.
Closed-end funds have been declining in popularity. At the end of 2010, there were 624 closed-end funds in the United States with combined assets of $241 billion.[13]
http://www.amfiindia.com/
The Association of Mutual Funds in India (AMFI) is dedicated to developing the Indian Mutual Fund Industry on professional, healthy and ethical lines and to enhance and maintain standards in all areas with a view to protecting and promoting the interests of mutual funds and their unit holders.
http://www.amfiindia.com/
Our Mailing Address:
ASSOCIATION OF MUTUAL FUNDS IN INDIA
Larger Map | Navigate Map ONE INDIABULLS CENTRE,
TOWER 2, WING B, 701, 7TH FLOOR,
841 SENAPATI BAPAT MARG,
ELPHINSTONE ROAD,
MUMBAI - 400 013 Office is open from Monday to Friday between 10 a.m. and 6 p.m. (Except on Public Holidays)
Telephone Numbers:
24210093/ 24210383/ 43346700
Fax Numbers:
43346712/ 43346722
Email ID:
[email protected]
CONCEPT
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:Mutual Fund Operation Flow Chart ORGANISATION OF A MUTUAL FUND.There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:Organisation of a Mutal Fund ADVANTAGES OF MUTUAL FUNDS
The advantages of investing in a Mutual Fund are:
http://www.amfiindia.com/
Our Mailing Address:
ASSOCIATION OF MUTUAL FUNDS IN INDIA
Larger Map | Navigate Map ONE INDIABULLS CENTRE,
TOWER 2, WING B, 701, 7TH FLOOR,
841 SENAPATI BAPAT MARG,
ELPHINSTONE ROAD,
MUMBAI - 400 013 Office is open from Monday to Friday between 10 a.m. and 6 p.m. (Except on Public Holidays)
Telephone Numbers:
24210093/ 24210383/ 43346700
Fax Numbers:
43346712/ 43346722
Email ID:
[email protected]
CONCEPT
A Mutual Fund is a trust that pools the savings of a number of investors who share a common financial goal. The money thus collected is then invested in capital market instruments such as shares, debentures and other securities. The income earned through these investments and the capital appreciation realised are shared by its unit holders in proportion to the number of units owned by them. Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost. The flow chart below describes broadly the working of a mutual fund:Mutual Fund Operation Flow Chart ORGANISATION OF A MUTUAL FUND.There are many entities involved and the diagram below illustrates the organisational set up of a mutual fund:Organisation of a Mutal Fund ADVANTAGES OF MUTUAL FUNDS
The advantages of investing in a Mutual Fund are: