Mutual funds, simply put [Video - 2:05] (2013)

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This short video, part of a series about a variety of financial matters, offers background information on mutual funds. The narrator explains that when someone buys units of a mutual fund, he is pooling his money with other investors. This allows small investors to own a much wider mix of investments than they would be able to afford on their own. The investments are managed by a professional fund manager.

There are three types of mutual funds: equity, in which money is invested primarily in a variety of stocks; fixed income funds, which are invested primarily in bonds; and asset allocation or balanced funds, which invest in a mix of both.

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