What is a mutual fund ? Why a mutual fund ?
A mutual fund gathers the money from individual investors into a pool of funds, which will be invested in different asset such as bonds, stocks to yield a return. Either profit or loss will be accumulated in the mutual fund in the form of Net Asset Value (NAV), which will be proportionately paid back to the investor.
Each mutual fund invest in a variety of stocks, bonds or other securities to meet specific investment objective such as income or growth, such as income or growth.
