What is mutual account and how does it work?

Answer 1

So far the answers you've received are poor. Your best bet, read a couple of books on Mutual Funds. It will be one of the most important reading of you life.

In short;
A mutual fund is a investment of different financial instruments.
In general (but not always) it can include one or more of the following;
Stocks
Bonds
Reits

There are other instruments in some funds. Some invest in US instruments, International or a combination of both.

Bottom Line:
Mutual Funds can be the best way for anyone to save for future long term goals, especially retirement.
Many funds can go down 10% - 50% in a year (or less). A good percentage will average (over 10 years or more) better than the highest rates of return you'd get in a bank (thus hopefully beating inflation).

Read those books!

Answer 2

It's an account based on mutual funds. Generally, a slower yield account, the mutual fund based account is your part of the investment pool. In other words, you put your money in and it's combined with the money of others who have a similar plan and investments are made according to whoever has your account. Mutuals are usually a lot more conservative than a broker would be...

Better than savings with earnings based on prime but I would prefer having a little more control and being more aggressive with investments for a quicker turn-around.

Hope this helps!

Answer 3

I'm not sure what you mean by mutual account. Are you talking about a mutual fund? Are you talking about insurance?

A mutual fund is a portfolio of stocks for diversification purposes. Investment companies offer them such as Fidelity, Vanguard, etc. It allows more investors to have diversified investments for the purpose of risk reduction. It's important to look at the purpose or objective of the mutual fund because they are all different.

Answer 4

A mutual FUND is created when a manager accepts money from many investors and combines the money into a large pool to invest. The actual investments in the fund can be ANY type of investment. Funds investing in stocks are the most well known. As the value of the investments increase, the value of your share of the fund increases. If the value of the investments falls, your share of the fund losses value. There is also a management fee deducted from the fund value.