Definition Of A Mutual Fund
Posted by MyChoices on 01/17/08 in Finance
A mutual fund is a group of stocks, bond and other securities. This creates a diversified portfolio for the investor or investment company and mutual funds are less of a risk than investing in individual stocks. This is because investors are able to spread their money across a varied collection of securities which include stocks, bonds and money market instruments. Therefore, the investor is not “putting all his eggs in one basket” with just one stock or one type of security.
Money is earned from the mutual fund in four ways.
tag this