A mutual fund is a large pool of money that several people put together, and that is usually invested in stocks and bonds by a financial expert. Anyone can invest in mutual funds. A Wharton graduate named Peter Lynch used to manage $14 billion in his mutual fund. Since Peter was known to be a very good mutual fund manager, people who had money invested in his mutual fund did not have to worry about their investments every day.
Related Articles:
- Championing Global Financial Education in Schools
- What Are Your Investment Choices? From Condos to Gold to Plain CashWhat will you include in your investment portfolio? While stocks and mutual funds are popular investments, you also have other choices when it comes to investing your money. Here is a look at some of the most common investment options.
- Why Investors Diversify: Spreading Your Wealth Across Assets, Industries and CountriesPutting hard-earned money into the stock market can be a scary move for first-time investors. Unlike a bank account, where you basically know that you’ll get interest -- a small, but guaranteed return on your cash -- buying stock gives you the opportunity to make a lot of money, or lose your entire investment. Diversification, or investing in a variety of different options, can help you balance any losses in one area with gains in another.
- Portfolio Managers: The Challenge Is Picking More than One Winning StockWith a sea of stocks from which to choose – close to 9,000 – portfolio managers have a daunting task making investment decisions for individual and institutional investors. While some managers claim to know the secret to stock-picking success -- experts say that, in the end, it is all about choosing lots of modest climbers rather than one shooting star.
- 10 Terms New Investors Should Know