What are mutual funds and why should I invest in them

What are mutual funds and why are they a good investmentWhat are mutual funds and why are they a good investment?

A mutual fund is a collection of stocks, bonds, or other assets that is managed by a fund manager. mutual funds are a good investment because professional fund managers do a lot of the work for you and they try to maximize return while limiting risk.

The typical terms of a mutual fund are, you invest your money, the fund manager buys assets for you, and the fund manager sells the assets for you. The fund manager charges you a fee for their services. What is the typical level of risk associated with mutual funds compared to other equities?

The level of risk associated with mutual funds is much lower than with equities. mutual funds typically invest in assets like stocks and bonds, which are less risk than say, a company that is building something from scratch.

mutual funds are also more diversified than other equities, which means they have assets in lots of companies, not just a single company.