0 Anonymous Asked: November 2, 2020In: Finance How do you explain mutual funds? 0 How do you explain mutual funds? Share Facebook 1 Answer Voted Oldest Recent devangthakkar 0 Questions 89 Answers 0 Best Answers 205 Points View Profile devangthakkar Added an answer on November 2, 2020 at 8:35 pm A mutual fund is a company that pools money from many investors and invests money in securities such as stock, bonds, and short-term debt. The combined holding of stocks, bonds, or other assets the fund owns is known as a portfolio. There are many types of mutual fund Equity Mutual Fund Fixed Income Fund Money Market Fund The primary advantage of investing in a mutual fund is that your investment is pooled with those of other investors and together your investment can purchase a diversified set of stock or bonds. If you are new to investing in mutual funds I would suggest you consult a mutual fund advisory service who can guide you to understand the funds and advantages of investing in a particular mutual fund 0 Reply Share Share Share on Facebook Share on Twitter Share on LinkedIn Share on WhatsApp Leave an answerCancel replyYou must login or register to add a new answer.