Mutual funds are pools of money that are managed by an investment company. They offer investors a variety of goals, depending on the fund and its investment charter. Some funds, for example, seek to generate income on a regular basis. Others seek to preserve an investor's money. Still others seek to invest in companies that are growing at a rapid pace. Funds can impose a sales charge, or load, on investors when they buy or sell shares. Many funds these days are no load and impose no sales charge. Mutual funds are investment companies regulated by the Investment Company Act of 1940. Related: open-end fund, closed-end fund. Bloomberg Financial Dictionary
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An open-end investment company. Equivalent to unit trust. Exchange Handbook Glossary
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A collective investment scheme in the US that pools investors' money to be invested in stocks, bonds and other securities. London Stock Exchange Glossary
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An investment company that pools money from shareholders and invests in a variety of securities, including stocks, bonds and money market instruments.
A mutual fund stands ready to buy back ( redeem) its shares at their current net asset value, which depends on the total market value of the fund's investment portfolio at the time of redemption. As open-end investments, most mutual funds continuously offer new shares to investors. NYSE Euronext Glossary
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mutual fund UK US noun [C] US
► FINANCE UNIT TRUST(Cf. ↑unit trust)
Financial and business terms. 2012.