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Originally Posted by NJ Brazen_3133
Do you buy shares of a mutual fund or do you open an account and let them invest your money without owning anything?
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You own a share of the net asset value of the mutual fund. The net asset value is the value of all securities held by the fund minus liabilities. So, if the value of all securities held by a fund is $110 and liabilities are $10, then the fund's NAV is $100. If there are 100 outstanding shares of the fund then the price-per-share shall be $1. So, this $1 is what you'll pay to acquire 1 share of the mf.
Quote:
Originally Posted by NJ Brazen_3133
Or does everyone just buy shares, and the managers just invest it, and is like owning any other stock?
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In essence yes but you don't get the same rights and benefits as owning a stock.
Quote:
Originally Posted by NJ Brazen_3133
If it is an account type without owning, is the returns guaranteed?
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Mutual funds are obviously subject to the same risk as the general market. The only difference is whether the fund's risk is higher/lower than the category/total market (like S&P).
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