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What Are Mutual Funds? The Ultimate Guide

The Best Guide to Mutual Funds © Getty Images Businesswoman working from home If investing products were desserts, mutual funds would be the mixed berry pie. Like that pie, a mutual fund is a collection of different ingredients – in this case, different types of investments such as stocks and bonds – held within the crust of the fund portfolio. When you buy a share of a mutual fund, you re essentially buying a slice of that pie. Popular Searches Each mutual fund slice is a prorated share of all the investments that make up the fund s pie. So if the fund is 6% Apple (ticker: AAPL) and 3% Coca-Cola Co. (KO), your slice will also be 6% Apple and 3% Coca-Cola.

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