Money market mutual funds offer investors the greatest degree of price stability. Mutual Fund Mutual funds take money from many different investors and pool it to invest on behalf of the group. Mutual funds have specific investment goals and offer investors important benefits such as diversification and professional investment management. The NASD is the self-governing body of the securities industry. The per-share value of a mutual fund, found by subtracting the fund's liabilities from its assets and dividing by the number of shares outstanding.
Mutual funds calculate their NAVs at least once daily.
Portfolio Manager A specialist employed by a mutual fund's advisor to invest the fund's assets in accordance with predetermined investment objectives. The possibility that a bond owner will receive his or her principal investment back from the issuer prior to the bond's maturity date. The official document that describes a mutual fund to prospective investors. The prospectus contains information required by the SEC, such as investment objectives and policies, risks, services and fees. Redeem To cash-in mutual fund shares by selling them back to the fund.