Mutual fund

Mutual funds are professionally managed type of collective investment conspiracy pool money from many investors and typically invest in safe investments (stocks, bonds, instruments of short term money market, other mutual funds in the safety and / or assets such as precious metals) [1] . mutual funds will have a fund manager who trades (buy and sell) the investment fund in accordance with the purpose of investment in the fund. In the United States, a fund registered in the Commission's Securities and Exchange (SEC) with the SEC, and the Internal Revenue Service (IRS) rules must distribute almost all the profits and net gains realized from sales of security (if any ) of its investors at least once a year. is majority controlled funds in the table or principal management (if a U.S. funded organized as a trust, as they often are), which aim to ensure funding is properly managed in the investment advisors and other organizations and service providers, all in the best interest of investors in the fund.

Since 1940 in the U.S. on the ID Act of 1940 (Act 40) and investment advisor Act of 1940, there are three main types of investment companies registered: Open-end funds (or mutual funds) Group investment trusts (UITs) and closed. Other funds have had the popularity they trade money (etf) and border deep below. This type of fund operating in Canada, however, that the rest of the world, mutual funds used as a generic term for various types of collective investment vehicles such as trusts, companies open investment (OEICs), unitized insurance funds, collective investment institutions to secure securities (UCITS, pronounced "You-sit) and SICAVs (pronounced" SEE-rock.)