Mutual Fund

A mutual fund is an investment vehicle that pools money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other assets. These funds are professionally managed, making them a popular choice for investors seeking exposure to the market without the need for hands-on management.

Key Features of Mutual Funds:

• Diversification: Reduces risk by spreading investments across various securities.
• Professional Management: A fund manager makes investment decisions on behalf of investors.
• Liquidity: Shares can typically be bought or sold at the net asset value (NAV) at the end of each trading day.
• Different Types: Includes stock funds, bond funds, index funds, and money market funds.

Mutual funds are ideal for long-term investors who want market exposure with less effort, though they may come with management fees that impact overall returns.