Article: What Is A Mutual Fund?
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What Is A Mutual Fund?
Ever wondered what is a mutual fund? A mutual fund is a pool of money run by a professional or group of professionals called the ?investment adviser.?
A mutual fund is a company that pools money from many investors and invests the money in stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate.
Because it is sometimes hard for investors to become experts on various businesses for example, what are the best steel, automobile, or telephone companies, investors often depend on professionals who are trained ...
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