Money pooled from many people and invested together
A fund pools money from many investors so a management company can invest it in stocks or bonds. Even a small amount spreads across many holdings, so one failure matters less. In return, a management fee is charged continuously for as long as you hold it. Because the underlying assets move in price, the principal is not guaranteed.
Even a $100 monthly contribution is spread across several hundred to several thousand holdings.
For learning, not investment advice. Decisions are your own.
StockFit · TrueNorthLabs Inc.