> Funds - prices confused?

Funds - prices confused?

Posted at: 2014-12-05 
Is a fund a stock? No, unless it is listed on a stock exchange. A fund like a Unit Trust or OEIC has a price based on asset value (NAV). They are open ended so new investors can buy units. An investment trust would be listed and is like any other stock (its business is investing in stocks and shares). An investment trust price will be a mix of NAV and supply and demand.

There is no supply and demand for an open-ended fund as the managers just issue more shares (or cancel shares when sold)

There is a lot more in the pricing of open ended funds so I would look it up on Wiki or something.

Investing in funds is not a bad idea but I think you should ask about it to the financial advises who will guide you properly. Also you can invest your money in accommodation bonds or some other financial plans.

Mutual funds are somewhat like like indivdual stocks.

They have a price, and you buy shares at that price.

The big difference is, that a fund has many stocks in

its fund.

yes

well im looking at funds and dont understand? well for example there is a invesco perptual fund that is 2,796.98p = £27.96. well how come a fund has a price? is a fund a stock? if i was to invest would i get shares? help me out please tghanks!! what affects the price of a fund if so?