What is a mutual fund?

Mutual funds are a very popular investment vehicle that people use to diversify their portfolios and benefit from professional investment management. It’s important to understand the basics of what they are. This short video gives you an overview.

Video transcript

What is a mutual fund?

A mutual fund is a collection of investments. When you buy units or shares of the fund, your money is pooled with other investors.

It is actively managed by a portfolio manager. They make decisions to buy or sell investments regularly.

Mutual funds are diversified and they have good liquidity. Speak to a financial advisor to learn more.