Managed Investing - Introduction
The most popular method for people investing in the stock market is by investing in Managed Funds, best known in the United States and Canada by the term "Mutual Fund".
A Mutual Fund is a professionally managed pool of money contributed by investors. There are different kinds of Mutual Funds, such as Real Estate, Bonds, Money Market, etc., but this section will discuss funds that invest in the stock market (called "Equity Funds").
These funds invest in a number of stocks, creating a diverse portfolio to reduce risk to the investors. Investors do not choose the stocks that are invested in, but many funds target a particular sector of the market. For example, there are Technology funds which invest in high-tech stocks. There are funds for Bio-Tech, Energy, Green/Renewable, and many more!
Mutual Funds are an extremely popular way to invest. In the United States, there is over $13 TRILLION dollars invested in various Mutual Funds, with about half that being invested in stocks.