
Common Sense on Mutual Funds: New Imperatives for the Intelligent Investor (Photo credit: Wikipedia)
Here is a definition strait from Wikipedia:
“A mutual fund is a type of professionally managed collective investment vehicle that pools money from many investors to purchase securities.[1] While there is no legal definition of the term “mutual fund”, it is most commonly applied only to those collective investment vehicles that are regulated and sold to the general public. They are sometimes referred to as “investment companies” or “registered investment companies.” Most mutual funds are “open-ended,” meaning investors can buy or sell shares of the fund at any time. Hedge funds are not considered a type of mutual fund.”
A mutual fund is a tool that allows individuals who do not have thousands of dollars to invest to do so by having a group of inidviudals pool their money together and purchase security (aka stock).
No matter what you do before you invest in a company you must know what they have done in the past, what they are doing now and what their plans for the future are BUT you will not be able to know what will happen in the future.

(Photo credit: Wikipedia)
My caution to anyone and everyone: Look deep before you spend. If someone is telling you that you are going to get rich quick run do not walk to the another adviser Ask questions and keep on asking until you understand what you need to know about your money. Use common sense; if someone is predicting the future it is OK to doubt what he or she is saying.
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