Mutual Funds

A traditional mutual fund is a financial tool that pools money to invest in various assets, such as stocks, bonds, and real estate. The main objective of a mutual fund is to generate a return for its investors. Professionals manage Mutual Funds and usually have a specific investment policy governed by regulations. Investors obtain a share proportional to the amount of investment in the fund and receive a portion of the return generated by the fund.

A traditional investor must research each asset's background, analyze who is behind it, its roadmap, historical performance, etc., and buy the chosen ones individually. Mutual funds offer the possibility of investing quickly in assets that have already been previously analyzed and selected by people dedicated to that function.

Last updated