How exactly does mutual funds work?

Hello, as a novice investor, how to make money from investment funds? I heard that this is not to calculate compound interest and this is the NAV of the day you want to withdraw the funds that will determine your profit? I felt it was like time deposits, their initial investment will earn interest and the interest is added to your initial investment and will only compound over time that interest rates vary each time. This is not the case of investment funds or law is? Can someone enlighten me on this? Thank you. Note: I know what a mutual fund is at least that's the general idea that diversified investment is managed by a fund manager. My question is how to make art? Does the interest compound or not?

A mutual fund is a corporation (a corporation that receives preferential tax treatment under the U.S. Internal Revenue Code), which combines investors' money and purchases of stocks in general, the values of other obligations. A professional manager or a group of professional managers make purchasing decisions securities on behalf of investors. Investors, in turn, pay the small fee for these administrators. Here's a good article on the selection of funds Investment http://creating-wealth.blogspot.com/2007/06/how-to-select-mutual-fund.html

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