Mutual Funds
Rather than assemble a portfolio on their own, individual investors and institutions can turn over the selection and management of their investment portfolio to a third party. One way of doing this is through a mutual fund. This type of fund is a comingled investment pool in which investors in the fund each have a pro-rata claim on the income and value of the fund. The value of a mutual fund is referred to as the “net asset value.” It is computed daily based on the closing price of the securities in the portfolio.
