What is a mutual fund?

A mutual fund is a type of investment vehicle that pools together money from different investors to invest in a variety of assets, such as stocks, bonds, and other securities. The fund is managed by a professional portfolio manager, who makes decisions on behalf of the investors and attempts to generate returns that are greater than the market average. Investors in a mutual fund typically receive a share of the returns based on the amount of money they have invested, and also bear a share of any investment losses. Mutual funds offer investors a convenient way to diversify their portfolios and access professional investment management.

This mind map was published on 19 April 2023 and has been viewed 47 times.