Mutual Funds
A type of investment strategy that collects money from multiple investors and invests it into securities like stocks, bonds, short-term debt, etc.
Professionally-managed and can be sold to the public.
Why do people buy mutual funds?
- Affordability
- Diversification
- Liquidity
Set backs
- Fees
- Pricing
- No Transparency
Types of Mutual Funds
- Money Market Funds
- Bond Funds
- Stock Funds
How the Cycle of Mutual Funds Works
- Investors pool their money and give to Fund Manager
- Fund Manager invest in Securities
- Securities generates Returns
- Returns are passed back to Investors
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