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15 November, 11:02

What is an investment instrument in which you purchase a part of a collection of investments?

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  1. 15 November, 11:21
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    Mutual Fund

    Explanation:

    In mutual fund, a group of people gathered their capital and manage all of it under one management. (usually, they trust this fund to a company who hired several experts in finance).

    That company will diversified that capital into several different investment in order to minimize the risk. The original owner of the capital just need to sit back and accumulate the profit without having any direct influence in the investment.

    Since the capital is belong to the members, Each members of the mutual fund will own every single parts of the investments collection that the company make.
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