Ask a Question

What are mutual funds?

+1 vote
asked Jun 12, 2012 in Mutual Funds by anonymous
retagged Jun 13, 2012 by losmurfs
   

1 Answer

+3 votes
A mutual fund is a company or collective that pools money from investors and invests that money in stocks, bonds and/or other securities or assets. Those securities or assests combined make up the mutual fund's "portfolio," and investors own shares proportionate to the amount of their investment.

Mutual funds are professionally managed and offer diversification because your investment can be spread around many companies or industries. There are annual fees and other expenses.
answered Jul 24, 2012 by anonymous

Categories

ExplainPlease on Facebook

75,014 questions

48,874 answers

1,169 comments

86,958 users

CuriousGirl313,480
BobTheAnswerGuy310,070
smartguy111,120
charlie100,740
bbrown97,580
answerwiz94,860
The.Sage93,460
amanda0192,460
kfox83,500
lsmith82,840
...