Introduction to Mutual Funds

Mutual funds are very popular types of investment funds in the US. They are known as an open end company under federal securities law.

What is a mutual fund?

To elaborate, A mutual fund is a pool of funds professionally managed for the benefit of all shareholders. A Mutual fund can be seen as a company which invests in diversified portfolio of securities to minimize risks. Mutual funds get the money they invest from shareholders, and they use this money to purchase securities such as stocks and bonds with the goal of bringing higher returns to the shareholders. [Read more…] about Mutual Funds