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An investment fund is a supply of capital belonging to numerous investors used to collectively purchase securities while each investor retains ownership and control of his own shares. ... Types of investment funds include mutual funds, exchange-traded funds, money market funds, and hedge funds
Built-in diversification. When you buy a mutual fund, your money is combined with the money from other investors, and allows you to buy part of a pool of investments. A mutual fund holds a variety of investments which can make it easier for investors to diversify than through ownership of individual stocks or bonds
The convenience of mutual funds is surely one of the main reasons investors choosethem to provide the equity portion of their portfolio, rather than buying individual shares themselves. ... Many mutual funds offer investors a chance to buy into a specific industry or to buy stocks with a specific growth strategy.
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