A mutual fund is an investment tool made up of money collected from many investors to invest in securities. Mutual funds are operated by professional managers, who allocate the fund’s assets and attempt to produce capital gains for the fund’s investors.
ETF, or an exchange-traded fund, is a type of fund that provides simplified access to a diversified collection of securities that include bonds, investment strategies, stocks, or commodities.
ETFs are in many ways similar to mutual funds; however, they are listed on exchanges and ETF shares trade throughout the day just like an ordinary stock.
Check the full review of Stockpile – the platform designed to help young and inexperienced investors to understand what the stock market is all about, in an easy, cost-efficient way.
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