Very simply, a mutual fund is a large fund created by pooling together the resources of multiple small investors, which is, then, invested for the mutual benefit of all investors. The fund is managed professionally by finance and investment experts, whose two primary goals are to a) grow the fund for capital gains and, b) ensure regular income for the investors.
This infographic is a concise guide to how mutual funds work, the different kinds of funds, how mutual funds differ from other financial instruments, and how, when and where to invest your hard-earned money.
What is a Mutual Fund?
Infographic by – StocksToTrade.com