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Mutual Funds vs. Youtual Funds

an illustrated example



Boring old mutual funds

Revolutionary new Youtual Funds

Created by

A handful of large financial institutions, creating generic investments for the masses.

Thousands of smart people with thousands of ideas, all over the world.

What happens when you buy a share

Your brokerage account will buy one share of the mutual fund. It's like owning one share of a business ... which itself owns many different stocks. It's like being a partner in the business.

Your brokerage account will buy lots of different stocks directly. Your account owns these shares, cutting out the middle man.

How you make money trading them

The value of the stocks in the mutual fund's "coffers" go up, making the value of each mutual fund share go up.

The shares held in your brokerage account rise in value.

Invented when

1902

Uh, what year is it?

Key characteristic

Bad breath

General hotness