What is a mutual fund&what is a money market?
A mutual fund is a collective investment where the money of many investors is pooled together and managed by a fund manager and his team. Money market can refer to a type of mutual fund, or a type of account.Mutuals fundsMutual funds can invest in almost anything from stocks, to bottles of wine. Mutual Funds follow an investment strategy outlined in the fund prospectus. The investment strategy is designed to attract like-minded investors, who want to invest in a particular asset class, but don’t want to have to select individual investments themselves.The management teamThe fund manager and his team are obligated to follow the laws, but also to follow the fund strategy as outlined by the fund prospectus. That means that a stock fund manager cannot suddenly decide to purchase gold one day.Money market fundsMoney market funds are a type of mutual fund that invests only in short term debt instruments. That means it will buy bonds with a maturity date of less than 90 days. These bonds can
