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Mutual Funds

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

  1. Investors pool their money and give to Fund Manager
  2. Fund Manager invest in Securities
  3. Securities generates Returns
  4. Returns are passed back to Investors

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