All About Mutual Funds

A mutual fund is an investment company that pools the savings of many individual investors who share a common financial goal. These investors buy shares of a particular mutual fund that has a defined investment objectives and investment strategies. The price of a mutual fund share is its net asset (total assets less total liabilities) divided by the number of shares outstanding. This figure computed and published daily, is the mutual fundÃ?s Net Asset Value Per Share (NAVPS). http://www.philamfunds.com
A fund manager invests the resulting asset base in various securities. These securities could range from shares of stocks to debentures to money market instruments, depending on the fundÃ?s stated objectives and risk profile. The income generated from the fundÃ?s investment activity is distributed proportionately among the shareholders, who may redeem their shares any time.

Thus, mutual funds are ideal for investors who do not have the opportunity to invest in highly diversified, professionally managed, baskets of securities at relatively low costs.