BLACKSQUARE

In response to the requirement of small investors in diversification of their investments the financial establishments created different mutual funds in which any stockholder owns small part of large well diversified investing portfolio. Mutual funds of money market offer investors the diversified investments into “commercial documents”, deposit certificates and paymaster’s bills. Bond funds invest investors’ money into different debt securities, one of which possesses high reliability level, others differ by heightened risk. Mutual funds specialize at stocks investing, own share holding including both conservative “blue dibs” and high risk stocks of “growth enterprises”. Investing funds that prefer working with real estate acquire mortgages or real estate itself.

Mutual funds issue stocks and sell them directly to investors often collecting rather essential rate, and also on request buy stocks from investors for full amount calculated as a share of the presented assets’ market cost. With this many of the mutual funds called “funds without duty” don’t collect the initial commission from investors. Investing funds known as “closed” investing companies don’t sell their stock directly to investors and don’t but them. Such funds’ stocks may be bought and sold at stock exchanges. The ownership of such stocks brings the small investors the essential advantages. The main part of dividends paid for them can be considered as realized capital growth and be imposed by taxes for much lower rate; besides in many cases automatic dividends reinvesting is allowed without brokers’ commission attention or payment for service. At last, these mutual funds’ stocks often are sold with a rebate calculated as a share of the company’s investing portfolio combined cost.