What is a mutual fund?

[Fangblade1]

Sorry if this is in the wrong section.
I've been reading Dave Ramsay's books called total money make over and he keeps mentioning about mutual fund and giving examples such as how a man put 40k in a mutual fund then in 12 years it became 300k.
Can someone tell me what a mutual fund is and how to get one.

Thank you guys, sorry if this thread has been covered.

Cheers.

 

[Gringotts Bank]

Sorry if this is in the wrong section.
I've been reading Dave Ramsay's books called total money make over and he keeps mentioning about mutual fund and giving examples such as how a man put 40k in a mutual fund then in 12 years it became 300k.
Can someone tell me what a mutual fund is and how to get one.

Thank you guys, sorry if this thread has been covered.

Cheers.

Mutual fund = managed fund.

It's where a bunch of people pool money and a licensed bunch of traders trade/invest that money for them.

Some managed funds lose money, some make money.

Morningstar have a website that might interest you.

 

[CanOz]

Try Wikipedia....ASF won't allow me to post the link, keeps kicking me off to "Cloud Flare"

 

[Thraxier]

I know of Dave Ramsey too and enjoy his show mainly from all the $150K + per year American people that ring up that have car loans and can't pay them. As mentioned above it is managed funds. The best managed funds have been around for a long time with proven track records with the lowest possible management fees but he doesn't mention much about management fees on his radio show as he makes his own money from his "ELP's" that he endorses and points to his website. Your own research is the best weapon, look for peoples feedback and comb through sites just like this one. Here in aus LIC's are much the same with minimal managed costs and with the dividend reinvestment option.

 

[Fangblade1]

I know of Dave Ramsey too and enjoy his show mainly from all the $150K + per year American people that ring up that have car loans and can't pay them. As mentioned above it is managed funds. The best managed funds have been around for a long time with proven track records with the lowest possible management fees but he doesn't mention much about management fees on his radio show as he makes his own money from his "ELP's" that he endorses and points to his website. Your own research is the best weapon, look for peoples feedback and comb through sites just like this one. Here in aus LIC's are much the same with minimal managed costs and with the dividend reinvestment option.

I stopped listening to him, He does about debt a lot. I am only 20 so wealth/capital is more important for me right now but he did teach me a few good stuff.

Do you know any one else that talks about savings/wealth/stock? I am looking for books like that.