“What are mutual funds?” This is a question we get asked every other day in Cowrywise. <\/p>\n\n\n\n
In this article, I\u2019ll use my love for Ice Cream to break down exactly what this concept means. <\/p>\n\n\n\n
Before we dive in though, please, do me a favour. After reading this article, kindly leave a comment saying \u201cI understand mutual funds better now\u201d. It\u2019ll help me know that this was simple to digest. And if you have any questions, feel free to leave them in the comments too.<\/p>\n\n\n\n
Mutual funds are a type of investment that allows you to invest in different types of assets at once while allowing you to be as hands-off as possible with paperwork and other intricacies. It\u2019s a basket of different investments put together to form one asset group. That asset group is called the mutual fund and the professionals who put the different investments together are fund managers.<\/p>\n\n\n\n
Fund managers are investment experts who work as professional asset managers to help meet specified investment goals on behalf of investors. They use their expertise and experience to determine what a mutual fund should comprise and how a fund should be invested profitably.<\/p>\n\n\n\n
Back to mutual funds, let me break it down with ice cream.<\/p>\n\n\n\n
Here’s how I like my ice cream: Instead of buying 4 cups with just one flavour in each, I prefer to buy a cup with different flavours and toppings in it. I never buy strawberry, vanilla, cheesecake and my absolute favourite chocolate flavours in 4 different cups. I buy the biggest cup or cone and then put all my favourite flavours in it with any topping I\u2019m craving at the time.<\/p>\n\n\n\n