What is a Mutual Fund?
Mutual funds give people a way to invest in a diverse mix of stocks, bonds, or other securities by buying shares of a financial vehicle that’s managed by a professional.
🤔 Understanding mutual funds
Mutual funds are professionally managed financial vehicles that allow people to invest in a portfolio of securities, which may include stocks, bonds, money market instruments and other securities.The investment decisions for mutual funds are made by professional managers, and they’ve become a popular offering in company-sponsored retirement plans. But their convenience isn’t free: Mutual funds come in different share classes with different fees and expenses. The potential risk and rewards of mutual funds are discussed in each fund’s prospectus.
Buying a share in a mutual fund is kind of like buying a pre-packaged salad...
Everyone who owns a share in a mutual fund gets the same mix of investments, whether that’s stocks, bonds, or cash. As the value of the fund as a whole rises or falls in value, each person’s investment fluctuates with it.
New customers need to sign up, get approved, and link their bank account. The cash value of the stock rewards may not be withdrawn for 30 days after the reward is claimed. Stock rewards not claimed within 60 days may expire. See full terms and conditions at rbnhd.co/freestock. Securities trading is offered through Robinhood Financial LLC.
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