What is a Mutual Fund? <ul><li>Brings groups of investors together </li></ul><ul><li>Actually buying shares of the fund </...
Mutual Fund Benefits <ul><li>Easy to buy and sell </li></ul><ul><ul><li>Financial Advisors </li></ul></ul><ul><ul><li>Dire...
Quick Quiz <ul><li>Investing in a stock mutual fund does NOT offer you </li></ul><ul><ul><li>Indirect ownership of a group...
Quick Quiz <ul><li>A fund’s price per share is called its: </li></ul><ul><ul><li>Stock price </li></ul></ul><ul><ul><li>Ne...
Quick Quiz <ul><li>Who owns Fidelity Magellan Fund? </li></ul><ul><ul><li>Fidelity </li></ul></ul><ul><ul><li>Fidelity Mag...
Quick Quiz <ul><li>Which of the following statements is false? </li></ul><ul><ul><li>When you own a fund, you own all the ...
Quick Quiz <ul><li>All mutual funds registered through the Investment Act of 1940 increase the number of shares by IPO’s, ...
Coming Next: <ul><li>Mutual fund fees and taxes </li></ul><ul><li>Down the road:  </li></ul><ul><ul><li>Mutual funds vs. I...
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What is a Mutual Fund?

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What is a Mutual Fund?

  1. 1. What is a Mutual Fund? <ul><li>Brings groups of investors together </li></ul><ul><li>Actually buying shares of the fund </li></ul><ul><li>Number of shares depend upon investors </li></ul><ul><li>Net Asset Value (NAV) issues </li></ul>Data Source: Morningstar Investing Classroom
  2. 2. Mutual Fund Benefits <ul><li>Easy to buy and sell </li></ul><ul><ul><li>Financial Advisors </li></ul></ul><ul><ul><li>Directly through fund family </li></ul></ul><ul><ul><li>Fund Supermarkets (e.g. 401k) </li></ul></ul><ul><li>Regulated and Professionally managed </li></ul>Data Source: Morningstar Investing Classroom
  3. 3. Quick Quiz <ul><li>Investing in a stock mutual fund does NOT offer you </li></ul><ul><ul><li>Indirect ownership of a group of companies </li></ul></ul><ul><ul><li>Regulation by the SEC </li></ul></ul><ul><ul><li>An insured investment </li></ul></ul><ul><li>Answer is “C” </li></ul>Data Source: Morningstar Investing Classroom
  4. 4. Quick Quiz <ul><li>A fund’s price per share is called its: </li></ul><ul><ul><li>Stock price </li></ul></ul><ul><ul><li>Net Asset Value (NAV) </li></ul></ul><ul><ul><li>Initial Investment </li></ul></ul><ul><li>Answer is “B” </li></ul>Data Source: Morningstar Investing Classroom
  5. 5. Quick Quiz <ul><li>Who owns Fidelity Magellan Fund? </li></ul><ul><ul><li>Fidelity </li></ul></ul><ul><ul><li>Fidelity Magellan’s Board of Directors </li></ul></ul><ul><ul><li>Fidelity Magellan’s shareholders </li></ul></ul><ul><li>Answer is “C” </li></ul>Data Source: Morningstar Investing Classroom
  6. 6. Quick Quiz <ul><li>Which of the following statements is false? </li></ul><ul><ul><li>When you own a fund, you own all the securities in that fund; when you sell the fund, the fund transfers ownership of those securities to you </li></ul></ul><ul><ul><li>When you own a fund, you pay a manager to choose securities for you </li></ul></ul><ul><ul><li>You can sell a closed fund, but you cannot buy one </li></ul></ul><ul><li>Answer is “A” </li></ul>Data Source: Morningstar Investing Classroom
  7. 7. Quick Quiz <ul><li>All mutual funds registered through the Investment Act of 1940 increase the number of shares by IPO’s, secondary offerings, and share repurchases. </li></ul><ul><ul><li>True </li></ul></ul><ul><ul><li>False </li></ul></ul><ul><li>Answer is “B” </li></ul>Data Source: Morningstar Investing Classroom
  8. 8. Coming Next: <ul><li>Mutual fund fees and taxes </li></ul><ul><li>Down the road: </li></ul><ul><ul><li>Mutual funds vs. I-shares </li></ul></ul><ul><ul><li>Best mutual funds of 2002 </li></ul></ul><ul><ul><li>… and much, much more! </li></ul></ul>Data Source: Morningstar Investing Classroom
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