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What exactly is a mutual fund and how does it work?
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What exactly is a mutual fund and how does it work?
Hi there,
A mutual fund is a pool of money belonging to many different investors. The total value of the fund is divided into shares, with each share representing a portion of ownership in the fund.
Typically, assets held in a mutual fund are invested with the goal of making a profit. As the value of the fund grows, the value of fund shares grows. Shareholders can sell their shares at a profit to capitalize on their investment.
Best regards from Moneyguru
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