Question: What Are Mutual Funds?
Answer: Mutual funds are compilations of individual stocks that are developed by mutual fund companies such as Fidelity, Vanguard and American. These mutual funds can be any combination of any type of stock and/or bond. The stock and bond mix in a mutual fund is developed by the mutual fund manager to meet a particular invesment goal. Some mutual funds follow industries, while others might be country-specific. They tend to be less risky than buying individual stocks because they are a diversified investment.
