Deep Dive – All about Mutual Funds

May 18, 01:24 PM

We’ve all heard of Mutual Funds. They’re among the first things people seem to talk about when discussing investments. The ads on TV from many companies advertising their mutual funds, and how easy it is to buy a mutual fund, are pretty much a part of daily routine. You, I and nearly everybody else knows this line by heart – “Mutual fund investments are subject to market risks.”

So what are these popular, and regularly well marketed, things called mutual funds?

A Mutual Fund is a pool of money provided by a number of people, investors and/or organizations. Mutual funds might just be the easiest, least stressful way of investing in the stock market. The general consensus is, more new money has been introduced into funds in stock markets across the globe during the past few years than at any time in history. This pool of money is invested and managed by a fund manager. This fund manager’s goals depend on the type of mutual fund.