Mutual fund pool the deposits of many investors together and invest them in a safe way like short-term government bonds.
A mutual fund is a collection of funds that is mainly controlled by a Fund Manager. It is a trust that gathers funds from numerous participants who have similar investing goals and invests them in stocks, bonds, money market instruments, and/or other securities.
When buying securities like stocks, bonds, or mutual funds, all investments entail a certain amount of risk. The money invested in securities is often not federally protected, in contrast to deposits at FDIC-insured banks and NCUA-insured credit unions.
To know more about mutual funds visit:
https://brainly.com/question/13247161
#SPJ4
