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Mutual Fund Definition

A mutual fund is a pooled investment vehicle that collects money from multiple investors to invest in a diversified portfolio of assets.

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What is a Mutual Fund?

Mutual funds are typically managed by professional fund managers and priced once per day based on net asset value.

They offer diversification and professional management, often for a management fee.

Example of Mutual Fund

An investor buying shares in a fund that holds a mix of stocks and bonds managed by a professional team is investing in a mutual fund.

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