A mutual fund collects money from investors and invests it in stocks, bonds or other securities. It is a huge industry; In the year In 2020, they had an estimated 120 million investors in America alone With a total net worth of $23.9 trillion, according to the Investment Company Institute.
Most funds have specific objectives, such as limiting short-term risk or maximizing long-term returns. Many traditional mutual funds are also actively managed by financial professionals who are tasked with making sound decisions to achieve these goals.
People use mutual funds for a variety of reasons, from saving for retirement or college to buying a home. Watch the video to learn the basics of mutual funds – and see if they can be part of a strategy to achieve your investment goals.
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