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Trends & Analysis
News

Apple’s shares slide despite upbeat earnings

News

Week Ahead Preview: 4th of November

News

Microsoft’s shares shorted despite upbeat profits

News

Crude oil gains on decline in US supplies

News

What’s on McDonald’s menu?

News

Alphabet’s stock jumps as profit tops views

Trends & Analysis
News

Apple’s shares slide despite upbeat earnings

News

Week Ahead Preview: 4th of November

News

Microsoft’s shares shorted despite upbeat profits

News

Crude oil gains on decline in US supplies

News

What’s on McDonald’s menu?

News

Alphabet’s stock jumps as profit tops views

Mutual fund definition

Mutual funds are collective investment vehicles that pool investor money and then invest it in public markets. Mutual funds have been an important part of the investment landscape for decades, with the oldest still-operating funds launched in the 1920s, though earlier versions of the same concept can be traced back centuries. Mutual funds are typically made up of a variety of stocks and other securities such as bonds, commodities, and derivatives.

How mutual funds work

There are multiple different structures available to mutual fund investors. Some, such as unit trusts, involve investing in units of a larger fund, while others lock in client assets into a single fund that is then reinvested in a range of assets.

Active and passive mutual funds

Mutual funds come in two main categories: active and passive.

Active mutual funds: Active mutual funds are managed by professional fund managers who actively buy and sell securities to outperform a particular market benchmark or index. Traders typically pay higher fees than passive funds due to the additional research and management required.
Passive mutual funds: Passive mutual funds are designed to track a specific market index or benchmark, aiming to replicate the performance of the broader market with a diversified portfolio of securities that mirrors the index or benchmark. Traders typically pay lower fees than active funds as they require less management and research. Actively managed funds attempt to beat the return of an index by holding different.

Start trading with ADSS

ADSS offers a range of global markets for traders, with CFD opportunities in indices, commodities, forex, equities and more. We also feature tutorials, how-to guides, and weekly webinars to help you navigate the financial markets and find better trading opportunities. You can start trading and investing online by opening a live trading or demo trading account.

 

See all glossary trading terms


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Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC S.P.C (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.