Things you need to know about mutual funds.

[Wiserr]

we all believe that mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities. These investors may be retail or institutional in nature, and the major thing we have to know about mutual fund it that they they tends to show and provide economies of scale, though they are mostly controlled and managed professionals.

i believe this Mutual funds have advantages and disadvantages compared to direct investing in individual securities. The primary advantages of mutual funds are that they provide economies of scale, a higher level of diversification, they provide liquidity, and they are managed by professional investors. On the negative side, investors in a mutual fund must pay various fees and expenses.

Primary structures of mutual funds include opens end funds, unit investment trusts, and closed end funds. Exchanged traded fund are open-end funds or unit investment trusts that trade on an exchange. Mutual funds are also classified by their principal investments as money market funds, bond or fixed income funds, stock or equity funds, hybrid funds or other. Funds may also be categorized as index funds, which are passively managed funds that match the performance of an index, or actively managed funds.
Still the advantage seems to be much than the disadvantage, I believe with mutual funds one can earn passive income with encountering any sort of problem.
what can you say about mutual fund?

 

[Deleted member 28127]

Mutual funds account is a type of bank account that means a businessman doesn't want savings or checking accounts he wants to invest his money in some companies to have more revenues over time this is the primary idea I do have about mutual funds or index funds, to be frank. Then they think the money saved is lack of earning because if you invest this money may you will have bigger returns than their culture.