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Govt. Certified Mutual Funds Analyst

A mutual fund is a security that pools money from investors to purchase stocks, bonds, or other securities for its portfolio. As a result, investors then typically own a portion of a portfolio that includes many more stocks and bonds than they could afford to purchase individually.

Investors purchase shares of the portfolio — the value of which increase or decrease based on the value of the investments it holds. The fund distributes any income it receives from stock dividends or bond interest to the shareholders, along with any capital gains from the sale of securities.

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Common Pitfalls
Definition of a Mutual Fund

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