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• Overview
• What is mutual fund?
• What are the benefits of mutual fund investing versus buying individual securities?
• How do you make money with mutual funds?
• What makes a mutual fund’s share price (NAV) rise and fall?
• How is a mutual fund categorized in terms of risk and return?
• What are the different kinds of mutual funds?
• What are index mutual funds?
• What are the benefits of index mutual funds?
• What are indexes?
• Is owning a bond mutual fund like owning an individual bond?
• How is mutual fund performance judged?
• How important are expenses?
• What are Exchange Traded Funds (ETFs)?
• With so many different funds, how should an investor choose?
• How do you buy mutual funds?
• Do mutual funds have liquidity?
• Who is promising your return?

Mutual Funds

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Is owning a bond mutual fund like owning an individual bond?

No. Unlike individual bonds, a bond mutual fund does not pay a fixed yield, nor does it return your principal in full at some time in the future. In addition, unlike individual bonds, a bond fund doesn’t have a specific maturity date; instead it has an average portfolio maturity that constantly changes as some bonds are redeemed and newer ones are added. This means that the share price of the fund may fluctuate, sometimes significantly, as interest rates and market conditions change.