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A mutual fund is both an investment and an actual company. This may seem strange, but it's actually no different than how a share of APL is a representation of Apple, Inc. When an investor buys Apple stock, he is buying part ownership of the company and its assets. Similarly, a mutual fund investor is buying part ownership of the mutual fund company and its assets. The difference is Apple is building a business of smartphones and tablets, while a mutual fund company is in the business of making investments. Mutual funds pool money from the investing public and use that money to buy other securities, usually stocks and bonds.
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