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An investment company that continually offers new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies. Money is collected from individuals and invested on their behalf in varied portfolios of stocks.

A '''Mutual Fund''' is a selection of professionally bought and managed stocks in which money is pooled by an investment company.  The funds continually offer new shares and buys existing shares back on demand and uses its capital to invest in diversified securities of other companies.  

 

The Share Price of the Mutual fund is based on the net value of the [[asset|assets]] or the value of all the investments owned by the fund, less any [[debt|debts]].  The major advantages of Mutual Funds is a reduced risk - the money is spread across several investiments.  If one or two do poorly, the remainder may do better, averaging the loss.  For many small investors Mutual Funds are that they do not have to watch the [[Stock exchange|stock markets]] constantly, and do extensive research into each stock.

 

 

Money markert funds focus on the debt instruments sold in the Money Markets.

 

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

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