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 and stalk someone and they stalk you at the same time. It is a mutual understanding that you both are doing this and can be done with or without acknowledgement
Friend: How do you know that person and why are you stalking them
Me: It is zebra, I have never had a conversation with them but we are mutually stalking each other
Me: It is zebra, I have never had a conversation with them but we are mutually stalking each other
by Stalking101 February 6, 2019
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We were both working on our papers but then she started chatting with me on Facebook and it was mutually assured distraction after that.
by Big South February 22, 2010
Get the Mutually Assured Distraction mug.Normally heard in the context of `mutually assured destruction`; when something is mutually assured, it is guaranteed to happen to both parties involved. This phrase is normally linked to discussions involving nuclear weapons, where `mutually assured destruction` means that we are all guaranteed to die.
Hindsight is always 20-20
But looking back it's still a bit fuzzy
Speak of mutually assured destruction?
Nice story...tell it to Reader's Digest!
- Megadeth, _Sweating Bullets_
But looking back it's still a bit fuzzy
Speak of mutually assured destruction?
Nice story...tell it to Reader's Digest!
- Megadeth, _Sweating Bullets_
by Wingchild September 13, 2003
Get the mutually assured 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"
guy 1- "Dude we were mutual fistpumping so hardcore at the club last night."guy 2- "Dude thats legit."
by vapanther October 6, 2010
Get the mutual fistpump mug.The state of being in which two people both cock block each other into the friend zone even though they are both attracted to and want to be with each other.
They are then relegated to the state of perpetual friend zone with much regret yet they never know what it is that they failed to achieve.
Thus these two attractive people are forced to for ever interact and want yet not connect.
They are then relegated to the state of perpetual friend zone with much regret yet they never know what it is that they failed to achieve.
Thus these two attractive people are forced to for ever interact and want yet not connect.
Bob and Anna MAFZ’d each other on Saturday; it was painful to watch. Mutually Assured Friend Zone (MAFZ)for the win.
by IFYG DRM December 28, 2018
Get the mutually assured friend zone mug.by DolansDictionary October 11, 2017
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