Chapter 4 Mutual Funds and Other Investment Companies. “Investments” ( Asia Edition ).

Investment companies are financial intermediaries that collect funds from individual investors and invest those funds in a potentially wide range of securities or other assets.

Net Asset Value = Market value of assets minus liabilities / Shares outstanding
 - The value of each shares

Unit Investment Funds are pools of money invested in a portfolio that is fixed for the life of the fund.

Closed-end funds do not redeem or issue shares. Investors must sell their shares to other investors.

Unlike, Mutual funds, however, hedge funds are commonly structured as private partnerships and thus subject to less regulation.


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