Investing: What is a Mutual Fund

This is Catherine Magaña with your Savvy Minute. Today I will give you another easy way tip
for you to get Savvy about your finances. Today’s tip will cover, “What is a mutual
fund?” A Mutual fund is an investment vehicle made
up of a pool of funds collected from many investors for the purpose of investing in
securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers,
who invest the fund’s capital and attempt to produce capital gains and income for the
fund’s investors. So basically, mutual funds are an investment
vehicle whereby you and many other people give money to a money manager, who then buys
securities with these collective funds. Each person who gave money to that fund manager
then becomes a shareholder in the mutual fund. You end up owning a proportionate amount of
the fund and as the securities in the fund go up and down, the price of the mutual fund
goes up and down with it. Join us each week for the Savvy Minute. You can find more of our videos at That’s Or give us a call at 760-692-5700 for your free 30 minute financial assessment today. And remember… Savvy Up!!

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