What Are Mutual Funds? | Basics & Simplified Explanation | Investment Guide
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A mutual fund is exactly what it sounds like. A bunch of people pool their money together and it gets invested as one big pot. The typical growth stock mutual fund holds 90 to 200 different stocks, so you own a piece of all of them. An index fund is a mutual fund that follows an index, and an index is just a snapshot of a market. The S&P 500 tracks the top 500 companies on the New York Stock Exchange. Your 401(k) isn't an investment. It's the bucket your mutual funds sit in, and the bucket decid
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A mutual fund is exactly what it sounds like. A bunch of people pool their money together and it gets invested as one big pot. The typical growth stock mutual fund holds 90 to 200 different stocks, so you own a piece of all of them. An index fund is a mutual fund that follows an index, and an index is just a snapshot of a market. The S&P 500 tracks the top 500 companies on the New York Stock Exchange. Your 401(k) isn't an investment. It's the bucket your mutual funds sit in, and the bucket decid
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