7'7 Mutual Funds

1
7.7 Mutual Funds
2
Total Investment in a Mutual Fund

• Mutual fund
• Kinds of Mutual Fund Companies

3

• Mutual funds are traded based on net asset values
  (NAV)
• NAV
  
• Example 1
• Find the NAV for a mutual fund with net assets
  10,000,000 500,000 shares

4
Commissions are called load funds

• Load fund
• No-load fund (NL)

5
Example 2

• Alberto Allende bought 300 shares of Parkson
  Equity Fund 500 shares of Ameris Growth Fund.
  What is Albertos total investment in these
  mutual funds?

6
Amount Rate of Commissions

• Commission
  
• Rate of commission
  
• Example 3
• What is the rate of commission, to the nearest
  tenth percent, on Banner Income Fund with a net
  asset value of 29.70 an offer price of 30.88?

7
Profit or Loss from Mutual Fund Investments

• Redeemed
• Proceeds
  
• Profit proceeds ____ amt invested
• Loss proceeds ____ amt invested

8
Example 4

• Find the proceeds from the sale of 100 shares of
  a mutual fund with a net asset value of 8.50.
  Find the amount of profit or loss if the total
  investment in the 100 shares is 675

9
Wrap It Up