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What is a Mutual Fund?
Based on an article at
www.WhatIsAMutualFund.com
A mutual fund is an investment vehicle
for those who want more than a
savings account at a bank, but aren’t
ready to trade stocks or bonds
Let's start with three reasons why an
investor, particularly a new investor,
might want to invest through mutual
funds:
1. Easier to diversify; when you own
smaller pieces of many companies
rather than a big piece of one company,
your risks are reduced
2. Professional advice and
stewardship, at a lower cost, since you
share the costs with many other
investors
3. Save time: mutual funds usually
require less research and due diligence
than stocks (but, you will still have to
sort out & select a fund or funds)
Historically, the development of mutual
funds led to what's called the
democratization of investing; in other
words, investing was—and is—no
longer just for the rich.
In the United States, more than 90-
million people hold investments in
mutual funds. Comparable numbers
exist for other countries, as well
But before you begin investing with
mutual funds, note there are also
downsides, which we cover in a
following SlideShare presentation
For more independent information
about mutual funds, see the more than
40 free articles at
www.WhatIsAMutualFund.com

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What is a Mutual Fund?

  • 1. What is a Mutual Fund? Based on an article at www.WhatIsAMutualFund.com
  • 2. A mutual fund is an investment vehicle for those who want more than a savings account at a bank, but aren’t ready to trade stocks or bonds
  • 3. Let's start with three reasons why an investor, particularly a new investor, might want to invest through mutual funds:
  • 4. 1. Easier to diversify; when you own smaller pieces of many companies rather than a big piece of one company, your risks are reduced
  • 5. 2. Professional advice and stewardship, at a lower cost, since you share the costs with many other investors
  • 6. 3. Save time: mutual funds usually require less research and due diligence than stocks (but, you will still have to sort out & select a fund or funds)
  • 7. Historically, the development of mutual funds led to what's called the democratization of investing; in other words, investing was—and is—no longer just for the rich.
  • 8. In the United States, more than 90- million people hold investments in mutual funds. Comparable numbers exist for other countries, as well
  • 9. But before you begin investing with mutual funds, note there are also downsides, which we cover in a following SlideShare presentation
  • 10. For more independent information about mutual funds, see the more than 40 free articles at www.WhatIsAMutualFund.com