Business

Essay specific features

 

Issue:

Miscellaneous

 

Written by:

Tuyet L

 

Date added:

August 23, 2016

 

Level:

University

 

Grade:

A

 

No of pages / words:

20 / 5524

 

Was viewed:

3547 times

 

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Essay content:

The portfolio manager trades the fund's underlying securities, realizing a gain or loss, and collects the dividend or interest income. The investment proceeds are then passed on to the individual investors. The rationale behind a mutual fund is that there are large number of investors who lack the time and or the skills to manage their money...
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Hence professional fund managers, acting on behalf of the Mutual Fund, manage the investments (investor's money) for their benefit in return for a management fee. The organization that manages the investment is called the Asset Management Company (AMC). Thus a Mutual Fund is the most suitable investment for the common man as it offers an opportunity to invest in a diversified, professionally managed basket of securities at a relatively low cost...
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