What is a Mutual Fund?

An investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money markets (cash). Mutual funds are managed by professional fund managers that seek to grow the value of the fund and reach the objectives outlined in the funds prospectus.

Mutual funds are a great tool to use for diversification, as you have the ability to own many different assets all at once. Investors need to be aware of the fees involved in each individual fund, and how they can impact the overall returns.

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