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Read about the pros and cons of mutual funds.

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Additional insights we found via NerdWallet
Risk-averse investors who don't want to manage their own portfolios and like the idea of getting higher returns than a savings account or CD could provide might gravitate toward mutual funds.
While mutual fund investors reduce the risk of losing money if a company the mutual fund invests in goes under, they also limit potential rewards if a company performs well.
Plus, mutual funds come with a list of fees. Although these vary per fund and brokerage firm, investors will have to do more research up front to find low-fee funds.
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