What are mutual funds in simple words?

Asked 3 years ago

Hi, I'm new to trading and exploring the different stocks available to me. I don't understand what mutual funds are, can someone please explain? Much appreciated!

Andia Rispah Igobwa

Tuesday, November 09, 2021

Mutual funds are groups of people who put money together. The money is then invested in stocks, bonds, or other assets - the combined holdings of these investments are called a portfolio. Each person who puts their money into the mutual fund gets shares representing a part of the overall holdings.