What is a Mutual Fund? - by William Smith

What is a Mutual Fund? - by William Smith: "A Mutual Fund can be termed as a form of a collective investment that collects money from many investors and invests the money into stocks, bonds, short-term money market instruments, and / or other securities.

In this type fund, the fund manager trades the fund's underlying securities, realizing their capital gains or loss, and collects the dividend or say the interest income. The investment earnings are then passed along to the individual investors.

The value of a share of the Mutual Fund, known as the net asset value (NAV), is calculated daily based resting on the total value of the fund divided by the number of shares purchased by investors.

Usage Of A Mutual Fund "