Mutual funds’ investments are carried out by a group of investors who pool their money together to invest in professionally managed portfolios. The investors buy shares in mutual funds and each share represents an investor's part ownership in the fund and the income it generates. A typical growth stock mutual fund has stocks from a lot of different companies, this means you are buying bits and pieces of all those companies when you invest in mutual funds. The performance of these companies varies, some of their stocks may go up while others go down, but the overall value of the fund goes up over time and so should your returns.

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