Mutual Funds(1) - MUTUAL FUNDS Click to edit Master...

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Unformatted text preview: 4/12/11 MUTUAL FUNDS Click to edit Master subtitle style 4/12/11 • Around 1980, 5 million Americans owned mutual funds. • However, by 2007, 96 million Americans in 55 million households owned mutual funds. • Mutual Fund Assets worldwide reached $23 TRILLION in 2010. • Impressive but $3 Trillion lower than the levels in 2007. Mutual Funds: Overview 4/12/11 Mutual Funds: Overview, Cont. Mutual funds are simply a means of combining or pooling the funds of a large group of investors. The buy and sell decisions for the resulting pool are then made by a fund manager, who is compensated for the service provided. Like commercial banks and life insurance companies, mutual funds are a form of financial intermediary 4/12/11 Investment Companies and Fund Types, I. • An Investment company is business that specializes in pooling funds from individual investors and making investments. • An Open-end fund is an investment company that stands ready to buy and sell shares in itself to investors, at any time . • A Closed-end fund is an investment company with a fixed number of shares that are bought and sold by investors, only in the open market . 4/12/11 Investment Companies and Fund Types, II 4/12/11 Investment Companies and Fund Types, III Net asset value (NAV) is the value of the assets held by a mutual fund, divided by the number of shares. Shares in an open-end fund are worth their NAV, because the fund stands ready to redeem their shares at any time. In contrast, share value of closed-end funds may differ from their NAV Great website to evaluate mutual funds…....
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Mutual Funds(1) - MUTUAL FUNDS Click to edit Master...

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