What are Mutual Funds? Understanding Mutual funds basics

What exactly is a Mutual fund?

I am sure that you have heard about Mutual Fund investments, buy what exactly is a Mutual fund investment? As simple, Mutual fund is like an insurance policy. There are accumulation and collection of many different types of shares. It is when investors together want to buy securites as a group, this fund can be called a mutual fund. Each and every investor of this group has a proportional stake in the shares based on the amount he has contributed.

Easy way to have several shares

It can be a cheap alternative and an easy way for a common man to have several shares. The birth of mutual fund was around eighty years ago in Boston. Today all over the world there are thousands of mutual funds and lot of people are investing in it.