Typically a Mutual Fund is an investment fund aimed at individual investors sponsored by an investment (or "mutual fund") house like Fidelity, Vanguard or T. Rowe Price. Each fund holds a "market basket" of stocks or bonds and individual investors buy into the fund by buying a share at "Net Asset Value," which is the total worth of the fund's holdings, calculated every day, divided by the number of shares outstanding. In other words, a mutual fund whose portfolio (value of all holdings) is worth a million dollars that has a hundred thousand shares outstanding will value those shares at ten dollars apiece. A typical stock-based mutual fund can earn its investors money in three ways: the dividends and capital gains that stocks pay out, and possible appreciation of the fund value per share.
For an individual investor, the advantage of owning a mutual fund is that s/he achieves diversity -- mutual funds own more than fifty stocks, on average -- that could not be achieved by buying a typical hundred shares of stock in only a few corporations. The disadvantages of such funds are that the "load" (sales commission) involved in buying or selling such funds can be considerable, and all funds incur some sort of service fees; that's how the investment house earns its money. Also, no "equity" or stock-based investment is guaranteed.
For an individual investor, the advantage of owning a mutual fund is that s/he achieves diversity -- mutual funds own more than fifty stocks, on average -- that could not be achieved by buying a typical hundred shares of stock in only a few corporations. The disadvantages of such funds are that the "load" (sales commission) involved in buying or selling such funds can be considerable, and all funds incur some sort of service fees; that's how the investment house earns its money. Also, no "equity" or stock-based investment is guaranteed.
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"My broker wants me to buy shares in something called an "open-end fund" but I don't know what that means."
"That's just a way to describe the majority of mutual funds, which remain open to all new investors who have the money to invest in them."
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"My broker wants me to buy shares in something called an "open-end fund" but I don't know what that means."
"That's just a way to describe the majority of mutual funds, which remain open to all new investors who have the money to invest in them."
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by al-in-chgo March 25, 2010
Get the Mutual Fund mug.when you fist pump in one motion. Not bending the wrist and elbow but keeping ur arm in an L shape and moving it side to side. This can also be described as a "soft fistpump"
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by vapanther October 6, 2010
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Mutual throw each other day is a day replacing national throw short people day, and it takes place on October 21. This day has been taken over by the short people, so they can get their revenge arc without having to wait until national throw tall people day.
Tall person: “Ha it’s October 21st! That means I get to throw you today”
Short person: “Actually it’s mutual throw each other day, so I can throw you as well.”
Short person: “Actually it’s mutual throw each other day, so I can throw you as well.”
by mother????? October 14, 2021
Get the mutual throw each other day mug.tom meet jerry through bob. bob is friends with both tom and jerry. so now tom and jerry are friends.
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by mmmashley December 16, 2007
Get the mutual friends mug.Girl: I can't stop thinking about how I want to rape you tonight!
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by sama_rama April 19, 2010
Get the Mutual Rape mug.Two people, either of the opposite sex or same sex, touching each others penis/vagina for pleasure and/or orgasm.
As I lay next to my girlfriend she used her hand to rub my hard cock, while I slipped my fingers into her hot tight pussy.
by robin May 18, 2005
Get the mutual masturbation mug.I like to fanticize about mutual procrastination, you know getting some friends together sitting in a circle and watching tv for two hours instead of homework, yeah thats the stuff.
by Redhawk23 February 22, 2011
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