How mutual funds work

How mutual funds work

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How mutual funds work
Mutual funds are baskets filled with different types of investments (usually stocks) that allow people to invest while mitigating the risk of choosing individual securities. Instead of requiring investors to perform the Herculean task of picking individual stocks themselves, mutual funds allow average investors to simply choose types of funds that would suit them. And they’re typically one of those personal finance topics people pretend they know about — but don’t actually have any idea what they are. That’s why I want to dive into the topic of how mutual funds work — as well as give you a recommendation for what you should start investing in. How mutual funds work Mutual funds work by pooling your money with the money of other investors and investing it in a portfolio of other assets (e.g., stocks, bonds). This means you’ll be able to invest in portfolios that you wouldn’t be able to afford alone because you’re investing alongside other investors. For example, there are large-cap, mid-cap, and small-cap mutual funds, but also mutual funds that focus on biotechnology, communication, and even Europe or Asia. Mutual funds are extremely popular because they allow you to pick one fund, which contains different stocks, [...]
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Tips to Increase Income and Not Work More Hours

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Tips to Increase Income and Not Work More Hours
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6 easy ways to make your money work for you
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