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What are mutual funds and why are mutual funds good investment vehicles?

April 26, 2017diversification diversify good invest Investing Investment investments Mutual funds vehicles

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What are mutual funds and why are mutual funds good investment vehicles?

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Mutual funds are a type of investment that centers around the stock market. When you buy shares in a mutual fund, you are actually buying stocks that are listed on the stock market and stock exchanges. The difference is that a mutual fund allows you to buy a piece of many different stocks from a wide range of companies all at one time instead of forcing you to take the time to buy stock in each company individually. This creates a very favorable situation for any investor; diversification.