What is a Mutual Fund?
What is a Mutual Fund?
A mutual fund is an investment vehicle where you and others pool your money to purchase other investments, like stocks, bonds, and even other mutual funds. Mutual funds can have 20 to a few hundred underlying investments. The benefit is that you are able to have an investment in all of those holdings for a small amount of money. Investing in a mutual fund provides more diversification to your investment portfolio than investing in one stock or one bond.
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