Importance

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Abstract

A system and method for allowing a plurality of investors to manage investments in a mutual fund or a directly-owned portfolio of investments. The assets and liabilities of the mutual fund are adjusted in response to an action (buy, sell, trade) by one of the fund's members or participating investors in the system. A determination is then made of that member's and the other fund members' pro rata ownership interest, based on the economic result of that action. This process is iterated, as necessary, in response to actions taken by any members of the mutual fund. In this way, the mutual fund is dynamically managed. For a portfolio directly-owned by an investor participating in the system, the portfolio would be dynamically managed by having it reflect the dynamically changing individual, and aggregated, actions of other participating members, or others. This investing system provides the first opportunity for investors to invest in a dynamically changing fund or to have a dynamically changing portfolio that is actively managed not by a professional manager but by the constantly changing, aggregated but individual (as opposed to collectively acted upon) preferences of an unlimited plurality of investors.

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First Claim