Mutual Fund
Mutual Fund means:
a type of regulated investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. Mutual fund is a regulated investment company generally created by pooling funds of investors to allow them to take advantage of a diversity of investments and professional management. At least 90% of its income must come from dividends, interest, and gains from the sale of securities; not more than 30% can come from stock held less than 3 months, options, and futures transactions. A mutual fund must distribute at least 90% of its income; a corporate tax is paid on undistributed income. (Also see Capital Gain Distributions.)
U.S. and other Developed Countries International Tax Meaning
A type of regulated investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities, or money market securities. Or portfolio of securities held by an investment company on behalf of investors.
See also Capital Gain in the American Legal Encyclopedia and Capital Gain in the World Legal Encyclopedia.
See Corporate Tax in the U.S. Legal Encyclopedia and Corporate Tax in the International Legal Encyclopedia.
See Dividend in the American Legal Encyclopedia and Dividend in the World Legal Encyclopedia.
Description and Definition of Mutual Fund
Investment companies that pool money from many investors. Professional fund managers invest the money in specific types of assets and securities.
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