A mutual fund is a form of collective investment that pools money from many investors and invests the money in stocks, bonds, short-term money market instruments, and/or other securities. [1] In a mutual fund, the fund manager trades the fund's underlying securities, realizing capital gains or loss, and collects the dividend or interest income. The investment proceeds are then passed along to the individual investors. The value of a share of the mutual fund, known as the net asset value (NAV), is calculated daily based on the total value of the fund divided by the number of shares purchased by investors
The Mutual Fund Comparator workbook enables you to compare the hypothetical investment results of two mutual funds that differ in their loads and annual operating fees
Outputs
- Cash out value? The amount of cash you'll get if you sell all your shares at the end of the holding period
- Total expenses? The total fund expenses you will have paid
- Effective annual return? The actual annual investment return you would realize