http://crosbycp.com Fri, 22 Apr 2011 09:48:49 +0000 en hourly 1 http://wordpress.org/?v=3.3.1 http://crosbycp.com/how-exactly-does-mutual-funds-work/ http://crosbycp.com/how-exactly-does-mutual-funds-work/#comments Wed, 25 Nov 2009 01:24:54 +0000 admin http://crosbycp.com/how-exactly-does-mutual-funds-work/ Hello, as a beginner investor how do you actually earn money from mutual funds? I heard that it’s not about compounding interest and that it’s about the NAV on the day you wish to withdraw the funds that will determine your profit?
I had a perception that it was like time deposit, that your initial investment will earn interest and interest is added up to your initial investment and it will compound over time only that the interest rates varies every time. This is not the case in mutual funds right or is it?
Can someone enlighten me on this? Thanks.

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