A well-rounded investment portfolio should include dozens of stocks. But researching and purchasing these shares individually can be a slog. A mutual fund or ETF can do the hard work for you, and probably save you money. A mutual fund is a basket of securities—usually stocks, bonds or a combination of both—that you can buy from an investment company or through a workplace retirement plan like a 401(k). Typically you are allowed to buy or sell once a day. Exchange-traded funds, or ETFs , are increasingly popular investment vehicles that closely resemble mutual funds but are bought and sold a different way.
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