What are mutual funds?
This article will teach you what mutual funds are and their features.
Introduction
A mutual fund is a professionally managed investment vehicle that pools money from many individuals to purchase securities. The phrase is commonly used in Canada, the United States, Canada, and India. However, similar structures worldwide include the SICAV ('investment company with variable capital') in Europe and the open-ended investment company (OEIC) in the United Kingdom. In the 1890s, mutual funds were first offered in the U.S.?
A mutual fund is a financial vehicle that pools shareholder assets and invests them in securities such as bonds, stocks, money market instruments, and other assets. Mutual funds are managed by professional money managers who use the help of the fund to generate income or capital gains for the fund's investors.
Small or individual investors have access to professionally managed portfolios of stocks, bonds, and other securities through mutual funds. As a result, each shareholder shares proportionately in the fund's profits or losses. Mutual funds invest in a wide variety of assets. Performance is typically gauged by changes in the fund's overall market capitalization, obtained from the combined performance of its underlying investments.