U.S. INVESTOR CENTER
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Bonds & Mutual Funds
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Mutual Fund
What Does Mutual Fund Mean?
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A funds portfolio is structured and maintained to match the investment objectives stated in its prospectus.
An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money mangers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A funds portfolio is structured and maintained to match the investment objectives stated in its prospectus.
One of the main advantages of mutual funds is that they give small investors access to professionally managed,
diversified portfolios of equities, bonds and other securities, which would be
quite difficult (if not impossible) to create with a small amount of capital.
Each shareholder participates proportionally in the gain or loss of the fund.
Mutual fund units, or shares, are issued and can typically be purchased or
redeemed as needed at the fund's current net asset value (NAV) per share.
Morningstar Mutual Funds
[FEED NOT AVAILABLE]
Bond
What Does Bond Mean?
A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.
Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along with stocks and cash equivalents..
The indebted entity (issuer) issues a bond that states the interest rate
(coupon) that will be paid and when the loaned funds
(bond principal) are to be returned (maturity date). Interest on bonds is
usually paid every six months (semi-annually). The main categories of bonds are
corporate bonds, municipal bonds, and U.S. Treasury bonds, notes and bills,
which are collectively referred to as simply "Treasuries". A debt investment in which an investor loans money to an entity (corporate or governmental) that borrows the funds for a defined period of time at a fixed interest rate. Bonds are used by companies, municipalities, states and U.S. and foreign governments to finance a variety of projects and activities.
Bonds are commonly referred to as fixed-income securities and are one of the three main asset classes, along with stocks and cash equivalents..
Two features of a bond - credit quality and duration - are the principal determinants of a bond's interest rate. Bond maturities range from a 90-day Treasury bill to a 30-year government bond. Corporate and municipals are typically in the three to 10-year range.