Mutual Fund Basics

Mutual Funds What Are Mutual Funds? This webpage titled mutual fund basics answers the question what are mutual funds. It also includes information on their characteristics, how funds can earn money for you, their advantages and disadvantages, and the... More

Mutual Funds
What Are Mutual Funds?
This webpage titled mutual fund basics answers the question what are mutual
funds.
It also includes information on their characteristics, how funds can earn money
for you, their advantages and disadvantages, and the degrees of risk in owning mutual
funds.

Over the past decade, American investors increasingly have turned to mutual funds to
save for retirement and other financial goals.
Mutual funds can offer the advantages of
diversification and professional management.
But, as with other investment choices,
investing in mutual funds involves risk.
And fees and taxes will diminish a fund’s
returns.
It pays to understand both the upsides and downsides of mutual fund investing
and how to choose products that match your goals and tolerance for risk.

A mutual fund is a company that pools money from many investors and invests the
money in stocks, bonds, short-term money-market instruments, other securities or
assets, or some combination of these inv Less