What’s the Mutual fund all about

[Ramolak19]

A mutual fund: is an investment vehicle that pools together money from multiple investors and invests it in a variety of different securities, like stocks, bonds, and other valuable assets.

The goal of investing in a mutual fund: is to generate returns for the investor while minimizing risk. Mutual funds are professionally managed by experienced portfolio managers who make decisions on where to invest the pooled capital based on their expertise and market conditions.

The Investors: can choose between actively managed funds which have higher fees but potentially better performance or passively managed index funds with lower costs but more limited upside potential. And the most beautiful part of mutual funds is that hundred of stocks can be in one fund

 

[Suba]

Fundamentally, mutual funds are just a place to collect funds that will be allocated to various investment instruments or to various types of products, such as: First, money market mutual funds, such as securities for the short term, this type of mutual fund has the lowest risk compared to other types of mutual funds, but also has small yield anyway, more suitable for retirees or conservative investors. Both fixed income mutual funds are like bonds with a medium term. The three mixed mutual funds such as bonds and stocks for a period of about 3-5 years. The four equity mutual funds are for a period of more than 5 years.