For this week’s lesson, let’s start with the basics! Today we’ll cover the investment vehicle called mutual funds. So what are they? To put it simply, a mutual fund is an investment where lots of people pool their money together to invest in assets like stocks, bonds, money market, or other assets. When you buy shares of a mutual fund, the money you used and invested will be handed to professional money managers. Their duty then is to invest it in a way that increases the fund’s value, thus increasing the value of the shares you own.
Now why should you consider investing in them?