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What does a mutual fund get by managing our funds?


What does a mutual fund get by managing our funds?

They get a fee which is calculated into the expense ratio of the fund. The more people that invest in the fund, the more money goes into their pockets for managing it.

They bring experience and possible insight into managing the funds. Though I am not a super big fan of mutual funds, they can be a good investment for someone who doesn't want to watch the market daily and choose individual stocks. There's less risk in buying a fund than an individual stock.

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