| What is a mutual
fund?
Large pools of money - A mutual fund pools investors' money and invests that money to pursue the investment objectives stated in the fund's prospectus. Every dollar in the mutual fund receives equal treatment, whether it belongs to a small investor or a big corporation.
Full-time professional management - You can be confident that your money is in the
hands of experts who make day-to-day investment decisions for you, based on extensive
investment research and sophisticated technology.
Built-in diversification - You're never in danger of "putting all your eggs in one
basket" with a mutual fund. A typical mutual fund holds many individual securities, which can help spread your risk and reduce the effects of market ups and downs on returns.
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