Mutual FundsThe Basics |
How does a mutual fund work? |
A management team of the fund seeks to invest in specific industries or ideas that they think will grow over the short-, medium-, or long-term time horizons. They create a portfolio of investments in individual shares of many companies, and intensely follow every nuance of the financial, marketing, product development, and competitive threats of the companies within the portfolio in order to provide strong returns to investors.