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A mutual fund company is an investment company that receives money from
investors for the sole purpose to invest in stocks, bonds, and other securities
for the benefit of the investors. A mutual fund is the portfolio of stocks,
bonds, or other securities that generate profits for the investor, or
shareholder of the mutual fund. A mutual fund allows an investor with less
money to diversify his holdings for greater safety and to benefit from the
expertise of professional fund managers. Mutual funds are generally safer, but
less profitable, than stocks, and riskier, but more profitable than bonds or
bank accounts, although its profit-risk profile can vary widely, depending on
the fund's investment objective.Most mutual funds are open-end funds, which
sells new shares continuously or buys them back from the shareholder (redeems
them), dealing directly with the investor (no-load funds) or through
broker-dealers, who receive the sales load of a buy or sell order. The purchase
price is the net asset value (NAV) at the end of the trading day, which is the
total assets of the fund minus its liabilities divided by the number of shares
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