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Mutual Fund Basics - What is a mutual fund?

Simply put, a mutual fund pools together money from many investors just like you to make up a large lump sum. The money collected is invested either in stocks, bonds and other securities, or in a combination of the three. As an investor, you are issued units in proportion to the money you have invested.

 

It's that simple!

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Presentation courtesy, Fidelity Mutual Fund.