Mutual Funds
Amutual fund is an investment scheme in which money is pooled from manyinvestors and then invests it in bonds, stocks, short-term money marketinstruments and/or other securities. At present, the global value ofall mutual funds sum more than $26 trillion.
There have been three fundamental categories of investment companiessince 1940 i.e. open-end funds, also known in the US as mutual funds;unit investment trusts (UITs) and closed-end funds. In the rest of theglobe, mutual fund is used as a generic term for different types ofcollective investment vehicles such as open-ended investment companies(OEICs), unit trusts, unitized insurance funds and undertakings forcollective investments in transferable securities (UCITS). |