What Exactly is a Mutual Fund?   DIVERSIFICATION COMES UP a lot.
The more types of stocks or bonds you own, the less any one of
them can hurt you by tanking. Depending on just a few
investments is always asking for trouble.  Yet building and
maintaining a diversified portfolio isn't for everybody. To do
it right, you might have to keep an eye on as many as 20 to 60
different stocks and bonds at once. Some people thrive on this
sort of thing, but others lack the time, interest or experience
to give a complex portfolio the attention it demands. For them,
the financial industry invented mutual funds, pools of stocks or
bonds that are managed by professional investors.  Funds come in
all shapes and sizes and most of them work this way: A sponsor
company rounds up money and pays a portfolio manager to buy
groups of securities according to a specific investing strategy
(but keep in mind that strategy could change and isn't
guaranteed). The company then sells shares in the fund to the
general public at a price refle