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What are Mutual Funds?

Mutual Funds are pools of money collected from many investors for the purpose of investing in stocks, bonds, or other securities. Mutual funds are owned by a group of investors and managed by professionals. In other words, a mutual fund is a collection of securities owned by a group of investors and managed by a fund manager.

Understanding How Mutual Funds Work

When you purchase a mutual fund, you are pooling money with other investors. The money pooled together by you and other investors are managed by a fund manager who invests in financial assets such as stocks, bonds, etc. The mutual fund is managed on a daily basis. Below is a diagram of how mutual funds work:

Benefits of money
Why Trade CFDs on Forex?

The Foreign Exchange market is the largest and most liquid market in the world with a daily trade volume of over $6.5 trillion dollars, eclipsing the likes of the New York Stock Exchange which by comparison, has a trading volume of only $20+ billion per day. It is also the market that caters to all traders no matter which part of the world you may live in as it’s open 24 hours a day, 5 days a week.

Investing in newer

Mutual funds may include investments in stocks, bonds, options, futures, currencies, treasuries and money market securities. ...

A mutual fund is an open-end professionally managed investment fund that pools money from many investors to purchase securities. Mutual funds are "the largest proportion of equity of U.S. corporations." Mutual fund investors may be retail or institutional in nature.

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