A mutual fund is a company that pools money from many investors and invests the money in securities such as stocks, bonds, and short-term debt. The combined holdings of the mutual fund are known as its portfolio. Investors buy shares in mutual funds.
Mutual funds are a common type of open-end fund, meaning the number of shares can be issued continuously, and investors can buy and sell shares at the net asset value calculated at the end of each trading day.
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