Article Writing Homework Help

Write a 8 pages paper on mutual funds. similarly we can outline the concept of bonds. Bonds gives people chance to lend our money to the government or a company. We receive interest and principle back over pre-determined amount of time. We can say that bonds are the most common lending investments traded on the market. Other than shares and bonds there are other types of investments like real estate and precious metals but it is generally perceived that mutual funds mostly invest in stocks and bonds.

Many definitions have written by people but essentially all dwell upon the same idea regarding its concept. So a mutual fund can be defined as a financial intermediary that allows a certain group of investors to pool their money together with a pre-determined investment objective. Here in mutual fund there exists a fund manager who trades the fund’s underlying securities. He then can realize capital gains or loss and then collects the dividend. Whenever we invest in a mutual fund, we are buying shares of the mutual fund and thus in the process becoming a shareholder of the fund. After the dividend income is found, the investment proceeds are then passed to the individual investors. We then calculate the value of the share of the mutual fund which is known as net asset value.