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the best way i can think to describe a mutual fund is it is a stock you can buy. buying this stock is like putting money in the pot of the mutual fund and it gives you portions of many different stocks. its kinda like buying alot of smaller portions of stocks.
so like in one of the mutual funds i recently divested from, The manager had bought GM, WalMart, Home Depot, Best Buy, and many other companies. so my one stock in the Mutual fund was worth a small portion of a stock in each of those companies.
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