<P> A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities . These investors may be retail or institutional in nature . Mutual funds have advantages and disadvantages compared to direct investing in individual securities . The primary advantages of mutual funds are that they provide economies of scale , a higher level of diversification , they provide liquidity , and they are managed by professional investors . On the negative side , investors in a mutual fund must pay various fees and expenses . It remains unclear whether mutual fund management can reliably produce an increase in investment returns exceeding these fees and expenses . </P>
<P> A mutual fund is a professionally managed investment fund that pools money from many investors to purchase securities . These investors may be retail or institutional in nature . Mutual funds have advantages and disadvantages compared to direct investing in individual securities . The primary advantages of mutual funds are that they provide economies of scale , a higher level of diversification , they provide liquidity , and they are managed by professional investors . On the negative side , investors in a mutual fund must pay various fees and expenses . It remains unclear whether mutual fund management can reliably produce an increase in investment returns exceeding these fees and expenses . </P>
who accepts all of the risk associated with a mutual fund 's portfolio of stocks and / or bonds
who accepts all of the risk associated with a mutual fund 's portfolio of stocks and / or bonds
investors
investors