{"id":126,"date":"2018-09-28T05:57:58","date_gmt":"2018-09-28T05:57:58","guid":{"rendered":"http:\/\/www.unitedfinances.com\/blog\/?p=126"},"modified":"2018-09-28T05:57:58","modified_gmt":"2018-09-28T05:57:58","slug":"what-is-a-mutual-fund","status":"publish","type":"post","link":"https:\/\/www.unitedfinances.com\/blog\/what-is-a-mutual-fund\/","title":{"rendered":"What is a Mutual Fund?"},"content":{"rendered":"

In the simplest terms, a mutual fund is a portfolio of managed stocks or bonds, or both. It is a company which brings together several groups of people and invests, on their behalf, money into a portfolio. Each investor then owns shares within the mutual fund, and this represents a small portion of its overall holdings. <\/span><\/p>\n

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Royalty Free Photo<\/u><\/a><\/p>\n

When you invest in a mutual fund, it is a lot different to investing in stock shares. Unlike stock shares, a mutual fund\u2019s shares are representative of investments in several different stocks instead of just one stock, bond or holding. In addition to this, a mutual fund does not provide its investors with any voting rights in companies. <\/span><\/p>\n

There are several <\/span>mutual funds advantage<\/u><\/a>s and they are well worth looking into if you wish to begin investing or diversifying your current portfolio. <\/span><\/p>\n

#1: Types of Mutual Fund<\/strong><\/h2>\n

There are several types of mutual fund and it is important to understand that each of these types have a different risk\/reward factor. Generally speaking, the higher your potential returns are from a mutual fund, the higher your risk of loss. <\/span><\/p>\n

Three of the more common types of mutual fund are:<\/span><\/p>\n