These Are Some of the Disadvantages of Mutual Funds

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These Are Some of the Disadvantages of Mutual Funds

Mutual funds pool money from investors who are constantly saving into the fund while at the same time, others are withdrawing from the fund, forcing the investment managers to keep large sums of money as liquid cash. This is one disadvantage of a mutual fund because, keeping liquid cash is detrimental to the growth of a portfolio since, it ties the money.

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