Comments on: Personal Finance 101: What Is A Mutual Fund? http://www.thesimpledollar.com/2007/03/26/personal-finance-101-what-is-a-mutual-fund/ Simple, applicable personal finance advice for the modern world Sun, 22 Nov 2009 01:08:33 -0800 http://wordpress.org/?v=2.8.4 hourly 1 By: Linda http://www.thesimpledollar.com/2007/03/26/personal-finance-101-what-is-a-mutual-fund/comment-page-1/#comment-13202 Linda Mon, 26 Mar 2007 23:45:37 +0000 http://www.thesimpledollar.com/2007/03/26/personal-finance-101-what-is-a-mutual-fund/#comment-13202 This is probably a stupid question but... You'd have to use different services to buy mutual funds than those for stocks, right? I have a Sharebuilder account and it doesn't seem like they do anything with mutual funds, which would be more for companies like Ameritrade, right? I think I have more questions but I'll (patiently) wait for the rest of your posts. =) This is probably a stupid question but… You’d have to use different services to buy mutual funds than those for stocks, right? I have a Sharebuilder account and it doesn’t seem like they do anything with mutual funds, which would be more for companies like Ameritrade, right?

I think I have more questions but I’ll (patiently) wait for the rest of your posts. =)

]]> By: Duane http://www.thesimpledollar.com/2007/03/26/personal-finance-101-what-is-a-mutual-fund/comment-page-1/#comment-13142 Duane Mon, 26 Mar 2007 16:54:36 +0000 http://www.thesimpledollar.com/2007/03/26/personal-finance-101-what-is-a-mutual-fund/#comment-13142 A technical note: Mutual funds redeem shares, and this is the only way to get the money out. The fund will pay out the net asset value of the shares (i.e. what they are worth) as of the close of trading on the day you initiate the sale. The pay out must be completed with 7 days of the request. A mutual fund is attractive because there is always a buyer -- the fund itself. Usually the money to redeem shares comes from cash on hand, dividends from underlying stock and a stream of new money coming into the fund. A technical note: Mutual funds redeem shares, and this is the only way to get the money out. The fund will pay out the net asset value of the shares (i.e. what they are worth) as of the close of trading on the day you initiate the sale. The pay out must be completed with 7 days of the request.

A mutual fund is attractive because there is always a buyer — the fund itself. Usually the money to redeem shares comes from cash on hand, dividends from underlying stock and a stream of new money coming into the fund.

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