What is a mutual fund? (1 point)
a multiple person account at the bank
a retirement fund for spouses
an investment fund that pools your money with other investors to buy securities
an investment strategy using debt from the bank to grow your wealth as you pay back a loan with the cashflow from the investment
an investment fund that pools your money with other investors to buy securities
The correct answer is: an investment fund that pools your money with other investors to buy securities.
The correct answer is: an investment fund that pools your money with other investors to buy securities (1 point)
To find the answer, you can break down the question:
"What is a mutual fund?"
To answer this question, you can use various methods:
1. Dictionary Definition: You can search for the definition of a "mutual fund" in online dictionaries or financial websites. This will provide you with a concise explanation of what it is.
2. Research: You can conduct research on mutual funds by reading articles, books, or reputable financial websites. This will give you a comprehensive understanding of what a mutual fund is and how it operates.
3. Online Resources: You can also rely on reputable websites like Investopedia, The Balance, or the Securities and Exchange Commission (SEC) to provide you with detailed information about mutual funds.
By using any of these methods, you will discover that a mutual fund is an investment fund that pools money from multiple investors to buy a diversified portfolio of securities such as stocks, bonds, or other assets. This pooling of funds allows individual investors to access a diversified and professionally managed portfolio, which may not be affordable if invested individually.