A mutual fund collects money from many investors and uses it to buy a mix of stocks, bonds, or other investments, all managed by a professional fund manager. When you invest, you own a share of the whole fund rather than individual stocks or bonds directly. Funds vary widely in what they hold, how concentrated they are, and what they charge — so two funds with similar names can invest very differently. That’s why it pays to look closely at what a fund actually owns.
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