What happens to your money when you invest in a mutual fund?

Rodrigo Pezley: 1

Stan Conley: Your money will be pooled with all the thousands of others who invest in the same fund. The fund manager will invest and trade all the money in whichever stocks or commodities he thinks will give the best return. You will benefit from a share in any profit that the fund makes over the course of the year. (or loss if any). Obviously some of your profit goes to pay for fees etc. But always remember that just because a fund has done well in the past - it does not guarantee that it will do so in the future - you can lose your money! Of course you can do your own trading online and probably do better....Show more

Gennie Shauer: Half of it goes toward commissions and fees.

Alden Soldano: Your money goes to buy shares in the fund. The fund then buys shares of stock or bonds, whichever the fund invests in. A small portion of the money goes for fees to operate the fund and pay the fund manager. They also keep some money on hand i! n case investors want to redeem their shares, and to buy more stocks or bonds when the fund manager finds opportunities.

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Alecia Kaehler: Penny stocks are loosely categorized companies with share prices of below $5 and with market caps of under $200 million. They are sometimes referred to as "the slot machines of the equity market" because of the money involved. There may be a good place for penny stocks in the portfolio of an experienced, advanced investor, however, if you follow this guide you will learn the most efficient strategies https://tr.im/4ed13

Samatha Nicar: All the money in the fund is invested in whatever the fund managers decide to put the money into - read the prospectus. It can be stocks, bonds or both. When companies pay dividends, you will receive your share. The price can also go up or down according to the market conditions. It is the same as investing in just one stock, although you are avoiding a lot of risk by investing in many, or even thousands of different com! panies.