Changes

The share price of the mutual fund is based on the [[net value]] of the [[asset]]s or the value of all the investments owned by the fund, less any [[debt]]s.  The major advantage of mutual funds is a reduced [[risk]] - the money is spread across several investments.  If one or two do poorly, the remainder may do better, averaging the loss.  For many small investors, another advantage of mutual funds is that they do not have to watch the [[Stock exchange|stock markets]] constantly, and do extensive research into each stock.

The share price of the mutual fund is based on the [[net value]] of the [[asset]]s or the value of all the investments owned by the fund, less any [[debt]]s.  The major advantage of mutual funds is a reduced [[risk]] - the money is spread across several investments.  If one or two do poorly, the remainder may do better, averaging the loss.  For many small investors, another advantage of mutual funds is that they do not have to watch the [[Stock exchange|stock markets]] constantly, and do extensive research into each stock.

[[Bond]] funds are mutual funds that deal in the bond markets.

A mutual fund may invest in bonds, stocks, or both.  It may track a major index (such as the [[Dow Jones Industrial Average]] or the [[Standard and Poor's]] 500) or may invest in a sector of the economy (such as a mutual fund investing in retail stocks, or bonds issued within the state of [[Texas]]).

 

[[Money market]] funds focus on the [[debt instrument]]s sold in the money markets.

 

[[Equity]] mutual funds place their investments in the common shares of companies.  

==Sources==

==Sources==