You've probably heard so much about mutual funds that even if you don't own any, it's likely that you know what they are and how they work. But just to clear up any misconceptions and to make sure we're all starting on the same page, let's quickly go over a few of the basics.
A mutual fund pools money from hundreds and thousands of investors to construct a portfolio of stocks, bonds, real estate, or other securities, according to its charter. Each investor in the fund gets a slice of the total pie. One unit of the mutual fund provides a piece of every holding within the fund.
Friday, 2 January 2009
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