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A mutual fund is
essentially a company that collects capital from a number of investors, pools
them together, and invests them in a number of debt and equity instruments. The
investment portfolio is managed by professional experts who make strategic
decisions so as to get high returns for their investors. The returns are
distributed to the investors in the form of dividends or capital appreciation.
Mutual funds also make for a good investment for individuals looking to invest
in the stock market but are not privy to its workings.
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