Investment

Explanation on benefits of investment in Mutual Funds
Some of the benefits of investing via mutual funds include:
a. Enables even smaller investment transactions
b. Diversification
c. Professional management
d. Tax benefits
e. Low transaction cost
d. Reduced administrative functions
Explanation on costs of investment in Mutual Funds
There is a fee for an investor who chooses to invest in mutual fund. These are broadly categorized under four categories:
a. Operating expenses
b. Front-end Load
c. Back-end load
d. 12b-1 charges

31.	Why can closed-end funds sell at prices that differ from net value while open-end funds do not? The reason why close-end funds sell at prices that differ from their net value is because they trade on the open market and are thus subject to fluctuations in their price according to the fluctuations in the market. On the other hand, open end funds, are sold by the mutual fund and must reflect the NAV of the investments. Yopiq fondlar o'zlarining sof qiymatidan farq qiladigan narxlarda sotilishining sababi, ular ochiq bozorda savdo qiladilar va shuning uchun bozordagi tebranishlarga qarab o'z narxining o'zgarishiga duchor bo'ladilar. Boshqa tomondan, ochiq fondlar investitsiya fondi tomonidan sotiladi va investitsiyalarning NAVni aks ettirishi kerak.
32.	What is a 12b-1 fee? 12b-1 fee are annual fee charged by mutual fund, as mandated by Securities and Exchange Commission for managing its marketing and distribution costs
33.	What are some differences between a unit investment trust and a closed-end fund? Differences between a unit investment trust and a closed end fund: