Category: Mutual Funds
A mutual fund is a financial vehicle that draws money from shareholders and invests those funds in various securities. The mutual fund’s holdings are referred to as its portfolio. Professional money managers manage the fund and allocate funds in order to generate the best returns for the investors. They provide access to professionally managed portfolios to small and individual investors. Mutual funds invest in a wide range of securities, and performance is typically measured as the change in the fund’s total market cap, which is derived from the aggregation of the underlying investments’ performance. A mutual fund employs a fund manager, also known as an investment adviser, who is legally required to act in the best interests of mutual fund shareholders.