Elm Tree Capital offers a comprehensive range of mutual fund investment options that include over 18,000 mutual funds from over 550 mutual fund companies. This competitive offering is supported by our screening, analysis and professional advice to help investors select the most appropriate funds for their investment strategy.
An open-end mutual fund is a type of investment company that pools money from many investors and invests the money in stocks, bonds, money-market instruments, other securities, or even cash. The investment portfolios of mutual funds typically are managed by separate entities known as “investment advisers” that are registered with the SEC.
An unlimited amount of shares are available to investors and the shares can be purchased from the fund itself or through a broker of the fund. Shares are generally redeemable and sold on a continuous basis and trade at their Net Asset Value (NAV), which must be calculated at least once a trading day.
Mutual funds include two cost structures, load and no-load. Both include management fees, but the former will include sales fees and commissions.
There three main reasons to invest in mutual funds include:
There are many varieties of open-end mutual funds, including index funds, stock funds, bond funds, and money market funds. Each may have a different investment objective and strategy and a different investment portfolio. Different mutual funds may also be subject to different risks, volatility, and fees and expenses. Fees reduce returns on fund investments and are an important factor that investors should consider when buying mutual fund shares.
Closed-end mutual funds are similar to open-end mutual funds with the exception that a limited number of shares are available to the public. Once these share are sold, the fund is listed on an exchange and new investors must purchase them in the market. They may trade at a discount or premium to their Net Asset Value (NAV).