Mutual fund investment involves the purchase of the shares of stocks of the investment company by individual, institutional and corporate investors and the investing of the pooled funds by the fund managers in various short and long term financial instruments and other types of securities. The funds from the purchase of shares of fund investments are also utilized and conceptualized to create various securities like stocks or bonds. The portfolios of investment managers are diversified and investment strategies differ in many ways but they are certainly spreading out their risks across a wide range of sectors.
