Mutual Fund

A mutual fund is a pool of money collected from many investors for investments in various assets such as bonds, equities, gold, etc
Mutual Funds are operated by money manager who manages the investor’s money and allocates it to various assets to grow it from the principle amount (initial amount of money)
It gives investors access to a professionally managed pool of a variety of assets which when invested in, can either increase or decrease

There are 2 main types of mutual funds:
Equity Fund: a mutual fund that mostly invests in equities, but other assets too such as bonds, real estate, gold, etc. They are also referred to as stock funds
Debt Fund: a mutual fund where money is invested in fixed income securities that is issued by a government, corporation, or any other entity to finance their operations. Examples of debt funds are government bonds and corporate bonds

Good Management: a certain management fee is paid to a professional manager who buys and sells various assets. The fee is relatively a small price to pa for getting professional help
Risk: reduced of facing loss due to your money being managed by an experienced professional
Dividends: dividends and interest income sources are received from mutual funds, becoming an easy source of passive income which you can invest in the fund to buy more assets and grow your investment

Management Abuse: excessive asset purchase, selling, etc may happen if your manager is abusing their authority or is experienced
Fee: even though the manager’s fee is quite low, managing the fund is very expensive which directly comes from the investors
Asset: this depends on how much money your manager puts in, and in where. For example you could lose a lot of money if you invest in equities due to it being a high – risk investment

Mutual Funds are safe to invest if you understand them; choose the right fund manager, amount of money to invest, etc
This asset is extensively regulated by bodies to prevent managers and corporations from stealing your money

Carefully read about Mutual Funds; for example what they are, type of risk, choosing a fund manager, etc
Monitor your mutual fund on a monthly basis
Always make your mutual funds payment (for example mutual fund manager fee, mutual fund fee, etc) early to avoid a lateness penalty, which will just increase your fee
Make sure to reinvest any money into the mutual fund that you receive to increase your investment; such as dividends or increase