Respuesta :
False: "A mutual fund is just a fancy name for a closed-end investing company."
What is mutual funds and it's types?
A mutual fund is an organization that collects funds from numerous investors and uses them to buy securities such as stocks, bonds, and short-term debt. A mutual fund's holdings are collectively referred to as its portfolio. Investors purchase mutual fund shares.
The types of mutual funds are given below:
Money market funds: It poses comparatively little risk. They are only permitted by law to invest in a select group of high-quality, short-term securities issued by American businesses and national, state, and municipal governments.
Bond funds: Compared to money market funds, which normally attempt to create larger returns, it carries higher risks. The risks and returns of bond funds can vary greatly due to the wide variety of bonds.
Stock funds: These funds invest in corporate stocks. Not all stock funds are the same.
Target date funds: Stocks, bonds, and other investments are contained in these. The mix gradually changes over time in accordance with the fund's strategy. Lifecycle funds, also referred to as target date funds, are created for people who have specific retirement dates in mind.
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