Mutual fund - Mutual fund Wikipedia the free encyclopedia...

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Mutual fund Mutual funds can give investors access to emerging markets From Wikipedia, the free encyclopedia A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money market instruments, and/or other securities. [1] The mutual fund will have a fund manager that trades the pooled money on a regular basis. The net proceeds or losses are then typically distributed to the investors annually. Since 1940, there have been three basic types of investment companies in the United States: open-end funds, also known in the U.S. as mutual funds; unit investment trusts (UITs); and closed-end funds. Similar funds also operate in Canada. However, in the rest of the world, mutual fund is used as a generic term for various types of collective investment vehicles, such as unit trusts, open-ended investment companies (OEICs), unitized insurance funds, and undertakings for collective investments in transferable securities (UCITS). Contents 1 History 2 Usage 3 Net asset value 4 Average annual return 5 Turnover 6 Expenses and TERs 6.1 Management fees 6.2 Non-management expenses 6.3 12b-1/Non-12b-1 service fees 6.4 Investor fees and expenses 6.5 Brokerage commissions 7 Types of mutual funds 7.1 Open-end fund 7.2 Exchange-traded funds 7.3 Equity funds 7.3.1 Capitalization 7.3.2 Growth vs. value 7.3.3 Index funds versus active management 7.4 Bond funds 7.5 Money market funds 7.6 Funds of funds 7.7 Hedge funds 8 Mutual funds vs. other investments 8.1 Share classes 8.2 Load and expenses 9 See also 10 References Page 1 of 10 Mutual fund - Wikipedia, the free encyclopedia 8/24/2009 mhtml:file://D:\my sem\Mutual fund - Wikipedia, the free encyclopedia.mht
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11 Further reading History Massachusetts Investors Trust (now MFS Investment Management) was founded on March 21, 1924, and, after one year, it had 200 shareholders and $392,000 in assets. The entire industry, which included a few closed-end funds represented less than $10 million in 1924. The stock market crash of 1929 hindered the growth of mutual funds. In response to the stock market crash, Congress passed the Securities Act of 1933 and the Securities Exchange Act of 1934. These laws require that a fund be registered with the U.S. Securities and Exchange Commission (SEC) and provide prospective investors with a prospectus that contains required disclosures about the fund, the securities themselves, and fund manager. The SEC helped draft the Investment Company Act of 1940, which sets forth the guidelines with which all SEC-registered funds today must comply. With renewed confidence in the stock market, mutual funds began to blossom. By the end of the
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Mutual fund - Mutual fund Wikipedia the free encyclopedia...

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