Typically, Mutual Funds trading means gathering money from numerous investors and then investing in a range of stocks and bonds by managed fund managers. A percentage of the holdings in the fund are divided among each investor in the form of units. Also, funds are divided into many types, like bonds, ETFs, mutual, cash, and more.

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What are Mutual Funds in Simple Words?

A Mutual Fund is a professionally managed investment vehicle, and the portfolio can consist of various asset classes like stocks, bonds and/or other financial assets. Mutual Funds allow individual investors to access a portfolio of various assets without actually owning all the securities in the portfolio the fund invests in. It provides investors with diversification and is usually categorised into different themes or investment objectives.

Webull’s Mutual Funds offering is broadly categorised into: Cash Funds, Equity Funds, Fixed Income Funds and Multi Asset Funds. You can access them through the Mutual Funds Center. Please update your app to the latest version to experience the new feature.

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Cash Funds

Cash Funds is a special type of Mutual Funds, also known as money market funds. It can lower the overall risk of your portfolio and give you a place to hold money while you wait to invest it. Generally, Cash Funds are a relatively low-risk investment option for money you already have. It can also be a part of your portfolio. Webull now provides two Cash Funds-USD and SGD.

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Why Trade Mutual Funds?

• Professional Management

A Mutual Funds is a professionally managed investment vehicle that is managed by fund managers with vast knowledge, proven experience, and wealth of information resources.

• Diversification

Mutual Funds is an efficient way to diversify your portfolio into different industries and assets.

However, please take note that there are risks involved with every investment.

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How Do You Earn a Return from Mutual Funds Trading?

There are two common ways to earn returns from Mutual Funds:

• Dividends and Interest from Stocks and Bonds
• Securities Price increase

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The Bottom Line

If you are unfamiliar with investing but want to get started, Mutual Funds might be a good choice. Through Mutual Funds, you can gain access to a professionally managed portfolio and spread your investments across different holdings to minimise potential losses..

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Next Step?

Do you want to trade Mutual Funds? Click here to learn how to trade Mutual Funds on Webull!