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A mutual fund is both an investment and an actual company. This may seem strange, but it is actually no different than how a share of APL is a representation of Apple, Inc. When an investor buys Apple stock, he is buying part ownership of the company and its assets. Similarly, a mutual fund investor is buying part ownership of the mutual fund company and its assets.
The difference is Apple is inthe business of making smartphones and tablets, while a mutual fund company is in the business of making investments.Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds.
The value of the mutual fund company depends on the performance of the securities it decides to buy. So when you buy a shareof a mutual fund, you are actually buying the performance of its portfolio.
we will update the daily GK Questions and answers. Read the Daily Updates of GK carefully and Download Question Bank File which will be given below. This method is very helpful to everyone to gain the knowledge. Check the latest General Knowledge Questions and Answers and crack the job.
A mutual fund is both an investment and an actual company. This may seem strange, but it is actually no different than how a share of APL is a representation of Apple, Inc. When an investor buys Apple stock, he is buying part ownership of the company and its assets. Similarly, a mutual fund investor is buying part ownership of the mutual fund company and its assets.
The difference is Apple is inthe business of making smartphones and tablets, while a mutual fund company is in the business of making investments.Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds.
The value of the mutual fund company depends on the performance of the securities it decides to buy. So when you buy a shareof a mutual fund, you are actually buying the performance of its portfolio.
Exam Date : 02/12/2018