Mutual Funds
A mutual fund is a professionally managed investment fund where individual small investors can gain access to professionally managed diversified portfolios.
There are different types of mutual funds that I am not going to delve deep into.
The advantages of a mutual fund mostly being that it is managed professionally and managing a diversified portfolio can be costlier and more time consuming than a mutual fund.
And the con would be that there is not guarantee that the fund is going to be great for you. No matter how diversified you are, what if most of them are down. And, the professionals managing the funds are not doing it for free.
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