How is a mutual fund different from other forms of investment?
A mutual fund is a type of investment that pools money from many investors to purchase a portfolio of stocks, bonds, and other securities. Unlike other forms of investing, mutual funds are professionally managed by fund managers who have the expertise to select investments with the highest potential for growth. Additionally, mutual funds provide investors with a hands-off approach, as the fund manager chooses which securities to buy and sell, and manages the portfolio on behalf of investors. Lastly, mutual funds often provide lower risk than other forms of investing due to the diversification of investments within the fund.
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