What is a Mutual Fund?

Mutual Fund pic
Mutual Fund
Image: investopedia.com

Currently a managing director at JP Morgan Chase, Darin Pastor has over a decade of experience as a financial advisor. In addition, Darin Pastor has past experience as a senior vice president, investment manager, and territory sales manager, where he increased sales of financial products such as mutual funds by 34% over the previous year.

An investment tool that allows small investors with limited funds to access a broad range of securities in a single investment vehicle, mutual funds are made up of investments from many different investors. These funds are used together to purchase assets including stocks, bonds, and other mutual funds. These funds are then managed by a money manager or team that makes investment decisions in an attempt to maximize gains in the financial market.

By pooling funds together, mutual funds enable investors to increase their individual purchasing power and access diversified mixes of investments which may otherwise be inaccessible without large sums of money. For this reason, mutual funds have increased in popularity, with well over $30 trillion invested in them worldwide.

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