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?
- 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