Learn How to Build Wealth Volume 2–Mutual Funds Asset Classes

Another way to purchase bundles of stock is to buy mutual funds. A mutual fund is a basket of investments that containing stocks, bonds, and other asset classes.

Mutual funds are formed when investors pool their money together to focus on a specific investments. The fund is generally sponsored by a financial institution who then forms a company and hires a fund manager. Similarly to owning shares of a company when buying stocks, mutual fund investors own a portion of the holdings of the fund.

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