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By Richard Loth (Contact | Biography)
Financial intermediaries become fund sponsors when they create and operate mutual funds. Such funds are a type of investment company that pools money from the investing public and collectively invests this money in stocks, bonds and money market instruments. A mutual fund provides individual investors with a convenient form of investing, professional management, broad diversification and liquidity.
The purpose of this tutorial is to show the investing public how to use a simple eight-point, fund evaluation technique to select and monitor a mutual fund. But first we are going to step back and put the mutual fund business into historical perspective, review the operational workings of a fund and look at some of the broad issues related to today's mutual fund industry. (For background reading, see Mutual Fund Basics.)
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History Of The Mutual Fund
Financial intermediaries become fund sponsors when they create and operate mutual funds. Such funds are a type of investment company that pools money from the investing public and collectively invests this money in stocks, bonds and money market instruments. A mutual fund provides individual investors with a convenient form of investing, professional management, broad diversification and liquidity.
The purpose of this tutorial is to show the investing public how to use a simple eight-point, fund evaluation technique to select and monitor a mutual fund. But first we are going to step back and put the mutual fund business into historical perspective, review the operational workings of a fund and look at some of the broad issues related to today's mutual fund industry. (For background reading, see Mutual Fund Basics.)
Return to the Main Menu.
History Of The Mutual Fund
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