A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or a combination of these investments. The combined holdings that the mutual fund owns are known as its portfolio. The investment portfolios of mutual funds typically are managed by separate entities known as ‘investment advisors’ that are registered with the SEC.
NAV: Net Asset Value is the sum total of the market value of all the shares held in the portfolio including cash, less the liabilities, divided by the total number of units outstanding. An NAV is undertaken once at the end of each trading day based on the closing market prices of the portfolio’s securities. Read the rest of this entry »
