What is Mutual Fund?

Mutual Fund is a type of investment fund that are managed by professional money managers.

Main features of Mutual Funds are:

• Professional Management - Mutual Funds are managed by professional fund managers who closely watch the markets and make constant investment decisions based on the fund's stated objective.
• Diversification - A typical Mutual Fund owns a large number of financial assets such as stocks, bonds, currencies, debts, futures contracts, and/or commodities to diversifies your investment.
• Transparency - Mutual Funds are transparent because they disclose their holdings daily.
• Daily liquidity - Mutual Funds can be purchased or redeemed at their daily prices.
• Investing Foreign Securities - Mutual Funds can be used to invest in foreign securities indirectly. As an individual investor, you often find it difficult to invest directly in foreign markets.
• Higher Management Fees - Mutual Funds usually have higher management fees than ETFs.

⇒ Largest Mutual Funds

⇐ Introduction of Mutual Fund

⇑ Introduction of Mutual Fund

⇑⇑ Mutual Fund