define: mutual funds
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Mutual fund Mutual fund. Definition: 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.
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- Define fund. fund synonyms, fund pronunciation, fund translation, English dictionary definition of fund. n. 1. A source of supply; a stock: a fund of goodwill. 2. a. A sum of money or other resources set aside for a specific purpose: a pension fund. b.
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- A mutual fund is a type of professionally managed investment fund that pools money from many investors to purchase securities.here are three types of U.S. mutual funds— open-end funds, unit investment trusts, and closed-end funds. The most common type, open-end funds, must be willing to buy back shares from investors every business day.
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- In the United States, mutual funds must be registered with the U.S. Securities and Exchange Commission, overseen by a board of directors or board of trustees, and managed by a Registered Investment Advisor.here are three types of U.S. mutual funds— open-end funds, unit investment trusts, and closed-end funds. The most common type, open-end funds, must be willing to buy back shares from investors every business day.
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What is a 'Mutual Fund' Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus. Next Up.
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- A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests it in stocks, bonds, short-term money mar … ket instruments, and/or other securities. The mutual fund will have a fund manager that trades the pooled money on a regular basis.
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Defined asset fund The dividends and/or coupons from these securities are passed on to unit holders, just as in a mutual fund. A defined asset fund works like this, with the addition that, at a certain maturity, the assets in the fund are liquidated and distributed to unit holders. 1  Facebook.
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balanced fund A mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk. mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk.
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Hedge fund Hedge fund. A hedge fund is an investment fund that pools capital from accredited individuals or institutional investors and invests in a variety of assets, often with complex portfolio-construction and risk-management techniques. It is administered by a professional investment management firm, and often structured as a limited partnership, limited liability company, or similar vehicle. Hedge funds are generally distinct from mutual funds, as their use of leverage is not capped by regulators, and distinct f
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Understanding how mutual funds, ETFs, and stocks trade Basics of mutual fund trading Mutual funds are professionally managed portfolios that pool money from multiple investors to buy shares of stocks, bonds, or other securities. The minimum initial investment for most mutual funds ranges from $1,000 to $10,000 but there are no investment minimums for additional purchases.
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fund A source of supply; a stock: a fund of goodwill. 2. a. A sum of money or other resources set aside for a specific purpose: a pension fund. b. funds Available money; ready cash: short on funds.
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Fund What is a Fund. A collective investment scheme is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group. diversify more than would be feasible for most individual investors which, theoretically, reduces risk.
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Exchange Traded Funds (ETF) Exchange Traded Funds (ETF) Definition: Also known as ETF. A basket of stocks similar to an index mutual fund. However, there are a number of important differences between ETFs and mutual funds. The ETF can be traded within the day, they can be shorted, purchased on margin and there even exists options on some ETFs.
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Mutual fund vs. ETF: Which is better? Mutual funds generally break down into two categories: actively-managed and passive. The latter track an index, like the S&P 500, in an effort to deliver market returns to its customers. These are low-fee and make no ostentatious claims – you will be the market, rather than beat it.
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Mutual funds in India Mutual funds in India. The first introduction of a mutual fund in India occurred in 1963, when the Government of India launched Unit Trust of India (UTI).
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fund fund. 1. a supply of money or monetary resources, as for some purpose. 2. supply; stock: a fund of knowledge. 3. funds, money immediately available; pecuniary resources. 4. an organization created to manage the resources of a monetary fund.5. to allocate or provide funds for (a program, project, etc.).und. The monetary resources of a government, organization, or individual.Used in plural: capital, finance (used in plural), money (often used in plural). To supply capital to or for: back, capitalize, finance, grubstake, stake, subsidize.
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What is an 'Index Fund' An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). An index fund is a type of mutual fund with a portfolio constructed to match or track the components of a market index, such as the Standard & Poor's 500 Index (S&P 500). Topics What's New
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What Are Hedge Funds? Definition: Hedge funds are privately-owned companies that pool investors' dollars and reinvest them into all kinds of complicated financial instruments. Their goal is to outperform the market -- by a lot. They are expected to be smart enough to create high returns regardless of how the market does.
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Money market fund Money market fund. A money market fund (also called a money market mutual fund) is an open-ended mutual fund that invests in short-term debt securities such as US Treasury bills and commercial paper. Money market funds are widely (though not necessarily accurately) regarded as being as safe as bank deposits yet providing a higher yield.
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Fund of funds Fund of funds - Fund of hedge funds. 1  A fund of hedge funds is a fund of funds that invests in a portfolio of different hedge funds to provide broad exposure to the hedge fund industry and to diversify the risks associated with a single investment fund.
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- Definition of 'Large Cap Funds'. Definition: There are a plethora of mutual funds available in the market. Funds which invest a larger proportion of their corpus in companies with large market capitalization are called large cap funds. Description: The criteria for large cap companies may vary.
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- Mutual Funds: An Excellent Investment Option. Mutual Funds. Mutual Fund is an excellent investment option if you’re looking for a professionally managed, diversified portfolio that offers the benefits of liquidity and transparency. Deutsche Bank AG, India offers you a wide range of funds from leading Asset Management Companies in India.
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- Definition of 'Commodity Funds'. Definition: Commodity funds are funds which basically invest in commodities, such as gold, oil or livestock. They also invest in commodity futures and options. Some commodity funds invest in the stocks of companies, like gold funds which invest in the stocks of gold mining companies. Description: As the name suggests, a commodity market covers various kinds of products such as gold, oil and various agri products, among others.
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balanced fund A mutual fund that buys a combination of common stock, preferred stock, bonds, and short-term bonds, to provide both income and capital appreciation while avoiding excessive risk.
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Hedge fund What is a Hedge Fund? A hedge fund is an alternative investment vehicle available only to sophisticated investors, such as institutions and individuals with significant assets. Like mutual funds, hedge funds are pools of underlying securities.
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money market mutual fund Definition. An open-end mutual fund which invests only in money markets. These funds invest in short term (one day to one year) debt obligations such as Treasury bills, certificates of deposit, and commercial paper. The main goal is the preservation of principal, accompanied by modest dividends.