2006-08-15 10:03:00 · 3 answers · asked by Asyano 1 in Business & Finance ➔ Personal Finance
Mutual fund is a pool of stocks and bonds. It reduces your risk level by diversifying your investments. Unlike stocks/bonds you can buy a fraction of a unit. Lets say Fund 'XYZ' is $30 a unit and you have $1000 to invest, you will get 33.3 units! your $1000 are invested in several different stocks/bonds depends on portfolio.
Good luck
2006-08-15 10:19:03 · answer #1 · answered by Ted 4 · 0⤊ 0⤋
a form of investment
Basically they buy a lot of different stocks and bonds, to spread out the risk of the investment. When you buy a share of a mutual fund, its like buying a little bit of all those different stocks. Its less risky, because if one stock goes bad you dont lose everything.
They hire someone to oversee all the investments, its that persons job to buy and sell stocks at the right time to make money for the fund.
2006-08-15 10:08:35 · answer #2 · answered by Kutekymmee 6 · 0⤊ 0⤋
An investment where you buy shares of a fund which invests in many different types of instruments. Such as a bond fund will invest in many bonds.
2006-08-15 10:10:17 · answer #3 · answered by Abby M 2 · 0⤊ 0⤋