People can buy investment-company stocks {mutual fund}|. Investment companies buy and sell stocks on stock markets and bonds in bond markets, for profit.
types
Mutual funds can have different investment goals, such as high return rate per share {dividend, share}, high growth rate in stock value {equity, stock}, or moderate rates for both.
risk
Mutual funds invest in a greater variety of stocks and so lessen risk. Emphasis on growth is more risky. Investments in growth should use extra, not essential, money. Investment costs are moderate to buy and sell. Invested money can be unavailable in down markets.
commission
Mutual funds can charge a commission {load, commission} for buying or selling shares. Mutual funds can charge no commission {no-load mutual fund}.
open
Mutual funds {open-ended mutual fund} can keep issuing new shares to public. Mutual funds {closed-end fund} can have a fixed number of traded shares.
Practical Affairs>Financial Affairs>Investing
Outline of Knowledge Database Home Page
Description of Outline of Knowledge Database
Date Modified: 2022.0224