Lesson 1-- What is Mutual Fund !

A mutual fund is a company that invests in a diversified portfolio of securities.
People who buy shares of a mutual fund are its owners or shareholders. Their
investments provide the money for a mutual fund to buy securities such as stocks
and bonds. A mutual fund can make money from its securities in two ways: a
security can pay dividends or interest to the fund, or a security can rise in value.
A fund can also lose money and drop in value.