What are mutual funds?

Mutual funds are a type of investment vehicle that pools money from multiple investors to purchase securities.

The mutual fund’s total holdings are knows as the portfolio.

Money market funds, bond funds and stock funds, are the primary types of mutual funds. Each variety has its own set of characteristics, hazards, and benefits.

As they are composed of many different individual investments, they offer investors broad exposure to the market as a whole and help with diversification.

Mutual funds can be bought and sold just like stocks, and there prices fluctuate throughout the day based on supply and demand.