MUTUAL FUNDS

Shares purchased formula?

Amount invested - any charges/ the Value per share.

Mutual funds are no longer a very popular investment.

False

When you buy a mutual fund, you purchase a share of a collection of investments.

True

Formula for value per share?

Value per share = Market Value ÷ Shares Issued

net asset value

assets minus liabilities

loading rate

determines sales and transactions fees

load

fee that the fund charges when shares are purchased

no load

fund that does not have a fee

mutual fund

investment instrument in which you purchase a part of a collection of investments

If a mutual fund does not charge a fee when the fund is purchased, it is called a -------- fund.

no load

share

percentage ownership in the mutual fund

The collection of investments in a mutual fund is called a

portfolio

portfolio

the collection of investments in the mutual fund