A mutual fund is a collective investment vehicle that is consisted of fund units, which are sold for retail investors. Practically, mutual fund is a large investment portfolio, in which can take a part even small investors proportionally to invested capital.
Every investor that has an access can acquire or sell fund’s units whenever he wants (if there are no exemptions) for the unit price. The price of units is changing every day according to the value of assets that are in fund’s portfolio.
Mutual funds are investing in such investments as stocks, bonds, money market instruments and other. Funds are managed by professional investment managers and have a management fee as other fees as well. Usually each fund has its own investment strategy, according to which is investing in specific investment instruments, sector, region and currency.
Read more about investment in mutual funds.
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