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Are mutual funds considered stocks or can they be referred to as stocks?

September 13th, 2010 | | Tags: , , | 4 Comments | |

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4 Responses to “Are mutual funds considered stocks or can they be referred to as stocks?”

  1. jlf Says:

    No, they are not stocks although the mutual fund may hold stocks in it’s investment portfolio. Mutual funds are a separate category of securities.

  2. Chand Says:

    Only equity mutual funds can be considered equity investments as most of their holdings are stocks. There are other mutual funds who primarily own bonds (bond funds), or short-term investments and cash (money market funds). A fund can own a combination of these instruments, but depending upon its mandate, it has to hold a minimum amount of stocks, bonds or short-term instruments.

  3. J Says:

    Most mutual funds are separate corporations. When you own shares in the XYZ fund you own shares of the fund. In a sense you are just like a stockholder of a corporation – you vote for directors etc. Most mutual funds used to issue share certificates which resembled stock certificates in all but name..

    That being said you should not refer to mutual funds as stocks. It is misleading since mutual funds usually own a number of stocks, bonds etc and "true" stocks are shares of one corporattion.

  4. Max M Says:

    A mutual fund can consist of stocks. It’s basically a fund made up of a bunch of different investments usually offered by a stock brokerage.

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