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)
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
Related Articles
  1. Investing

    4 Mistakes to Avoid When Choosing Mutual Funds to Invest in

    Mutual funds are a great way to build wealth but not all of them are the same. Investors have to be mindful of fees, turnover, redundancy and performance.
  2. Investing

    Are Mutual Funds A Relic?

    We list some options other than mutual funds for your retirement plan.
  3. Financial Advisor

    How to Rate Your Mutual Fund Manager

    What to really look for when you're deciding on a mutual fund.
  4. Investing

    The Benefits of Picking Mutual Funds Over Individual Stocks

    Learn about the advantages of investing in mutual funds rather than individual stocks, including the benefits of affordability, oversight and diversification.
  5. Investing

    Introduction To Money Market Mutual Funds

    Learn about the easiest way to benefit from money market securities.
  6. Investing

    The Advantages Of Mutual Funds

    Learn how to get diversification, liquidity and professional management at an affordable price.
  7. Financial Advisor

    5 Secrets You Didn’t Know About Mutual Funds

    Learn five of the "secrets" about mutual funds that can have a significant impact on mutual fund choices and investor profitability.
Frequently Asked Questions
  1. How does the stock market affect gross domestic product (GDP)?

    Find out how the stock market affects gross domestic product (GDP) through two different channels: financial conditions and ...
  2. Which countries have the highest tariffs?

    Find out which countries have the most restrictive import tariffs on international products, based on data collected by the ...
  3. What are some examples of expansionary monetary policy?

    Learn about expansionary monetary policy and how central banks use discount rates, reserve ratios and purchases of securities ...
  4. What is the difference between earnings and profit?

    Read about the differences between a company's earnings and its profit, and learn how the gap between earnings and profit ...
Trading Center