• Decrease font size
  • Default font size
  • Increase font size
  • default color
  • red color
  • green color
Home How do mutual funds work
PDF Print E-mail
Written by Administrator   
Thursday, 26 March 2009 02:48

How do mutual funds work?

So what is a mutual fund? And how do mutual funds work?

A mutual fund is comprised of a pool of investors who own multiple stocks or bonds. These funds are started up and run by a fund manager, or a team of fund managers. The job of the fund manager is to research potential stocks for the fund, buy stocks that meet the investing criteria of the fund, and monitor fund performance. Mutual funds are offered through just about any broker, and can be bought or sold just like an individual stock.

There are many benefits of investing in a mutual fund, and mutual funds are one of the most popular ways to invest today. One of the main benefits of a mutual fund is that you as an individual investor don't need to spend any time researching individual companies to invest in - the fund manager(s) do that for you. All you need to do is find a fund you like, and you can buy into it for a fixed amount of money, i.e. $1,000.

For further details on mutual funds, please visit the Mutual Funds tab on the menu to your left.

Return to Investing Basics from How Do Mutual Funds Work

Last Updated on Saturday, 28 March 2009 02:03