A mutual fund is an investment vehicle which allows an individual to
be mostly diversified in his investments by owning a vast amount of
stocks or a particular investment tool. The funds invested in a
particular scheme are managed by a single fund manager or a team of
managers. They make sure that the fund grows optimally within its
investment criteria. These managers are responsible for buying and
selling of securities, which is based on their research results.
Mutual fund companies pool money from some investors. Each of those
investors becomes a shareholder in that fund.
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- posted 9 years ago