Money Making Forum - HYIP Listings

Go Back   Money Making Forum - HYIP Listings > Other Ways to Make/Save Money > General Investment Forum & News

Thread Tools Display Modes
Old 01-16-2010, 06:08 PM
Posts: n/a
Default What are Mutual Funds

What are Mutual Funds

Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. This article helps you to know in depth on:

Is it possible to diversify investment if invested in mutual funds?
Find more on the working of mutual fund
Know more about the legal aspects in relation to the mutual funds
At the beginning of this millennium, mutual funds out numbered all the listed securities in New York Stock Exchange. Mutual funds have an upper hand in terms of diversity and liquidity at lower cost in comparison to bonds and stocks. The popularity of mutual funds may be relatively new but not their origin which dates back to 18th century. Holland saw the origination of mutual funds in 1774 as investment trusts before spreading to Anglo-Saxon countries in its current form by 1868.

We will discuss now as to what are mutual funds before going on to seeing the advantages of mutual funds. Mutual funds are investment companies that pool money from investors at large and offer to sell and buy back its shares on a continuous basis and use the capital thus raised to invest in securities of different companies. The stocks these mutual funds have are very fluid and are used for buying or redeeming and/or selling shares at a net asset value. Mutual funds posses shares of several companies and receive dividends in lieu of them and the earnings are distributed among the share holders.
A Brief of How Mutual Funds Work
Mutual funds can be either or both of open ended and closed ended investment companies depending on their fund management pattern. An open-end fund offers to sell its shares (units) continuously to investors either in retail or in bulk without a limit on the number as opposed to a closed-end fund. Closed end funds have limited number of shares.

Mutual funds have diversified investments spread in calculated proportions amongst securities of various economic sectors. Mutual funds get their earnings in two ways. First is the most organic way, which is the dividend they get on the securities they hold. Second is by the redemption of their shares by investors will be at a discount to the current NAVs (net asset values).
Are Mutual Funds Risk Free and What are the Advantages?
One must not forget the fundamentals of investment that no investment is insulated from risk. Then it becomes interesting to answer why mutual funds are so popular. To begin with, we can say mutual funds are relatively risk free in the way they invest and manage the funds. The investment from the pool is well diversified across securities and shares from various sectors. The fundamental understanding behind this is not all corporations and sectors fail to perform at a time. And in the event of a security of a corporation or a whole sector doing badly then the possible losses from that would be balanced by the returns from other shares.

This logic has seen the mutual funds to be perceived as risk free investments in the market. Yes, this is not entirely untrue if one takes a look at performances of various mutual funds. This relative freedom from risk is in addition to a couple of advantages mutual funds carry with them. So, if you are a retail investor and planning an investment in securities, you will certainly want to consider the advantages of investing in mutual funds.

We offer managed forex accounts for high net worth clients. Please contact us for details!

Managed Forex Accounts

For More info about Managed Forex Account

managed forex accounts|managed forex|forex managed accounts|forex

Frank Gollier
Business Development Manager
Forex Portfolios Management
Reply With Quote
Old 11-24-2012, 04:56 PM
Posts: n/a

I can not with you will disagree.
Reply With Quote
Old 11-26-2012, 06:00 AM
Posts: n/a

I have passed something?
Reply With Quote
Old 11-27-2012, 03:37 AM
Posts: n/a

Certainly. It was and with me. Let's discuss this question. Here or in PM.
Reply With Quote
Old 12-05-2012, 09:43 AM
Posts: n/a

Thanks for giving the information.
Reply With Quote
Old 01-22-2015, 02:12 PM
TetragHap TetragHap is offline
Newbie Amateur
Join Date: Jan 2015
Posts: 6
Default Money Making Forum - HYIP Listings - Reply to Topic

I have passed something?
I was advised a site with lots of information on that topic.
Buy cheap hosting. ??????? ?????? What is hosting .
Reply With Quote
Old 11-08-2017, 09:50 AM
PooringRain's Avatar
PooringRain PooringRain is offline
Newbie Amateur
Join Date: Nov 2017
Posts: 3

Thanks for the article, was really informative.
Reply With Quote

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Forum Jump

All times are GMT. The time now is 04:27 PM.

All posts on are the opinions of the individual posters and not necessarily those of or it's owner. does not support or endorse any programs and/or opportunities discussed here, & we do not give investment advice. We also do not research the opportunities discussed here. We simply provide a place for discussion.