Scoring Fund Investment Quality
AAA
  1. Overview Of The Mutual Fund Industry
  2. History Of The Mutual Fund
  3. How A Mutual Fund Works
  4. Today's Mutual Fund Industry
  5. Fund Investment Qualities
  6. Fund Investment Quality Scorecard (FIQS)
Overview Of The Mutual Fund Industry

Overview Of The Mutual Fund Industry

By Richard Loth (Contact | Biography)

Financial intermediaries become fund sponsors when they create and operate mutual funds. Such funds are a type of investment company that pools money from the investing public and collectively invests this money in stocks, bonds and money market instruments. A mutual fund provides individual investors with a convenient form of investing, professional management, broad diversification and liquidity.

The purpose of this tutorial is to show the investing public how to use a simple eight-point, fund evaluation technique to select and monitor a mutual fund. But first we are going to step back and put the mutual fund business into historical perspective, review the operational workings of a fund and look at some of the broad issues related to today's mutual fund industry. (For background reading, see Mutual Fund Basics.)

Return to the Main Menu.

History Of The Mutual Fund

  1. Overview Of The Mutual Fund Industry
  2. History Of The Mutual Fund
  3. How A Mutual Fund Works
  4. Today's Mutual Fund Industry
  5. Fund Investment Qualities
  6. Fund Investment Quality Scorecard (FIQS)
Overview Of The Mutual Fund Industry
RELATED TERMS
  1. Historic Pricing

    A method for calculating the value of an asset using the last ...
  2. Earnings Per Share - EPS

    The portion of a company's profit allocated to each outstanding ...
  3. Return On Investment - ROI

    A performance measure used to evaluate the efficiency of an investment ...
  4. Bear Fund

    A mutual fund designed to provide higher returns when the market ...
  5. Ulcer Index - UI

    An indicator developed by Peter G. Martin and Byron B. McCann ...
  6. Net Present Value - NPV

    The difference between the present value of cash inflows and ...
  1. What are the benefits and costs (or risks) of a systematic investment plan (SIP)?

    Discover the advantages and disadvantages of using a systematic investment plan; you may lower your average cost, or you ...
  2. What are the main differences between a systematic investment plan (SIP) and mutual ...

    Reduce your average cost per share on mutual fund investments using the dollar-cost averaging strategy by way of a systematic ...
  3. Who is eligible to obtain a Simplified Employee Pension (SEP) IRA?

    Learn if an individual may contribute to a Simplified Employee Pension IRA when his or her employer offers a plan and how ...
  4. How do I calculate earnings per share with simple capital and complex capital structure?

    Learn the difference between simple and complex capital structures and how the structure affects a company's calculations ...
Related Tutorials
  1. Industry Handbook
    Investing Basics

    Industry Handbook

  2. Discounted Cash Flow Analysis
    Fundamental Analysis

    Discounted Cash Flow Analysis

  3. Ratio Analysis Tutorial
    Fundamental Analysis

    Ratio Analysis Tutorial

  4. Top ETFs And What They Track: A Tutorial
    Mutual Funds & ETFs

    Top ETFs And What They Track: A Tutorial

  5. Introduction to Stock Trader Types
    Active Trading Fundamentals

    Introduction to Stock Trader Types

Trading Center