TAILIEUCHUNG - Lecture Investments – Chapter 4: Mutual funds and other investment companies

Chapter 4 presents the following content: services of investment companies, net asset value, types of investment organizations, investment policies, costs of investing in mutual funds, exchange traded funds, a first look at fund performance,. | CHAPTER 4 MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES 1 MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES Investment Companies Types of Investment Companies Mutual Funds Costs of Investing in Mutual Funds 2 MUTUAL FUNDS AND OTHER INVESTMENT COMPANIES Taxation of Mutual Fund Income Exchange-Traded Funds Mutual Fund Investment Performance Information on Mutual Funds 3 INVESTMENT COMPANIES 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. Pooling of assets is the key idea behind investment companies. 4 INVESTMENT COMPANIES Each investor has a claim to the portfolio established by the investment company in proportion to the amount invested. These companies thus provide a mechanism for small investors to “team up” to obtain the benefits of large-scale .

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