> What is a mutual fund?

What is a mutual fund?

Posted at: 2014-12-05 
My dad is telling me he puts rent money I pay him each month (I am 22 and living with him due to a disability) in a mutual fund. what is a mutual fund exactly? and how does it work?

Mutual fund is one the risky fund. The mutual fund sometime give high profit and some time gives higher loss. Profit is not a constant one.The amount will be collected from the various investors and holding the securities.

A mutual fund is a type of professionally managed collective investment scheme that pools money from many investors to purchase securities.

Investment programme funded by shareholders that trades in diversified holdings and is professionally managed. The basic idea of how mutual funds work is straightforward. Investors pool their money and hire a portfolio manager to invest in a variety of investment securities. When an investor buys a mutual fund, their investment dollars are used to purchase new shares of the mutual fund. In other words, shares of the mutual fund are created for the new investor, these new shares are issued to the new investor, and the new investor’s dollars are combined with dollars of the other mutual fund holders.

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers, who invest the fund's capital and attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.

Mutual fund is one of the long term fund.An investment programme funded by shareholders that trades in diversified holdings and is professionally managed.

A mutual fund is an investment vehicle that pools people's money and makes various investments (depending on the type of mutual fund). This allows investors, through the fund, to better diversify their investments. The value of your investment will obviously fluctuate with the market.

A Mutual found is when someone invest in a company that takes their original amount of money and invests it in many different company's by deviding it.

This is safer than normal investments because if one company go's under you still have the rest your money was decided into to depend on. This is often used for retirement.

An investment programme funded by shareholders that trades in diversified holdings and is professionally managed.

Google it fer chrissakes.

My dad is telling me he puts rent money I pay him each month (I am 22 and living with him due to a disability) in a mutual fund. what is a mutual fund exactly? and how does it work?