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Mutual Funds
Global Trading Group, Inc. offers to its
investors a very large selection of mutual funds...
WHAT IS A MUTUAL FUND? In a mutual fund, small investors numbered in the thousand and many not so small investors independently agree to add money into a pool organized and managed by a group of professional money managers. Each investor owns a part of the pool according to the amount of his investment. Investors can become part of the pool either by investing a small amount regularly or by investing a large amount of money.
INVESTMENT OBJECTIVE AND MUTUAL FUND INVESTING Regardless of your investments objective, you will find a mutual fund with a stated objective that will match�your investment objective. The following are the most common investment objectives:
TYPES OF MUTUAL FUNDS
NET ASSET VALUE Every afternoon at or after the close of the markets mutual funds add up the closing value of the securities ( bond, stock commercial paper etc) together with other assets�( cash etc)�the mutual fund may own, all liabilities and various fees and expenses are subtracted etc. The result is the total net assets of the fund. This amount is divided by the number of shares outstanding to arrive at the net asset value per
share. The net asset value per share fluctuates based on factors such as interest rates, value of the securities in the portfolio, performance of the�companies in the portfolio, general economic
conditions. Anytime an investor wishes to add money to a mutual fund the money is added and the investor receives an amount of shares from the pool. The number of shares is always based on the net asset
value. Net asset value determines also the amount of money the investor receives when he redeems his/her
shares. For �money market mutual fund this may not apply. Most mutual fund make it a practice to maintain at $ 1.00�the value of the shares of its money market
fund. Mutual funds are divided into two large groups . Load funds and no load
funds. No load funds are sold at net asset value and load funds are sold at net asset value plus a commission. There are three basic ways a mutual fund makes money for its investors:
MUTUAL FUND PROSPECTUS A prospectus is a booklet prepared by a mutual fund company. In the booklet the mutual fund company complies with FULL DISCLOSURE RULES and states the conditions under which investors can participate in the mutual fund. Investors are urged to always read a prospectus before investing in a mutual fund.
Dollar Cost Averaging
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