Mutual Funds

Mutual funds are made up of pools of money collected from investors that are used to purchase stocks, bonds, or other securities. Investment managers are professionals who create mutual funds to accumulate a bigger supply of liquidity. They collect money from hundreds, thousands, or even millions of investors. These collective monies are then used by the investment managers to buy a selection of stocks, bonds, or other securities in line with the manager’s investment philosophy. Mutual funds are an alternative to individual portfolios of stocks, bonds, and securities that can take advantage of pooled investment with a lower cost to enter the market. Each investor, as a shareholder to the fund, gets the advantage of the diversified portfolio of the fund’s entire pool of investments.

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