what is mutual funds ?

3 Answers

  • 2 months ago

    Mutual funds are financial instruments that are used for investments and for building wealth over a long period of time. A mutual fund is run by an asset management company. These companies have a fund manager who will pool together the funds they get from the investors and then invest them in securities such as bonds and stocks. Mutual funds are an affordable way of getting access to professionally managed portfolios. A fund manager’s main objective is to allocate the funds into different assets to provide the most optimum returns to the investors.

    There are various mutual funds products for investors to choose from, like for instance equity funds, index funds, open ended mutual funds, close ended mutual fund, money market funds, fixed income funds.

     A fund manager charges a certain fee for handling these portfolios, which is deducted from the investment. If an investor does not want a fund manager, they can read into how to buy direct mutual funds, where an investor is investing in the mutual funds directly without any manager’s supervision. It is advised that investors do this only when they have sufficient knowledge about investing and the functionality of the market. Mutual funds are more liquid than other investment options in shares, bonds and deposits.

  • kswck2
    Lv 7
    2 months ago

    Oh, just look it up on Investopedia.com 

  • 2 months ago

    Nandeesh - I know you are a spammer because you and anyone with more than 10% of a brain can look this up on Wikipedia and get a thorough and concise answer.

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