Mutual funds might be the world's most commonly known investment products. But what exactly are they, and how do they work?

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What is a Mutual Fund?
Assume you walk into your local bank and said, “I would like to invest money for my future. What do you recommend?” In most cases, they would suggest a series of actively managed mutual funds. They might carry the bank’s brand name, like Wells Fargo or they might be funds created by a different firm…