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Mutual funds are managed by an investment company. The owners of the mutual fund are different...

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Finance

  • Mutual funds are managed by an investment company. The ownersof the mutual fund are different from the shareholders. Theinvestment company owners do not, necessarily, invest in the mutualfunds they are managing. Discuss whether this situation results inan incentive for the owners of the investment company to chargehigher fees to the mutual funds investors.
  • 250 words

Answer & Explanation Solved by verified expert
3.7 Ratings (516 Votes)
As we all know a mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities These investors may be retail or institutional in nature Investing in a share of a mutual fund is different from investing in shares of stock Unlike stock mutual fund shares do not give its holders any voting rights A share of a mutual fund represents investments in many different stocks or other securities instead    See Answer
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