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 outstanding for that day