Mutual Fund

What is it? A group of securities owned by a group of investors. It is managed by investment professionals who make buy and sell decisions for the group. Investors choose to purchase shares in mutual funds for a couple of reasons: they can diversify their holdings more easily with a smaller amount of money (because the mutual fund has the money to buy shares in many different types of securities); and they can rely on investment professionals to make trading decisions for them.

Added By: Nathan

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