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Mutual funds can be a smart investment, depending on the investor. Mutual funds accumulate a sum of capital that is then invested in order to fulfill the objectives stated in the fund’s prospectus. This results in a collection of stocks, bonds, and other securities which is professionally managed by an investment company. Mutual funds are not listed on stock exchanges, and as such are bought and sold through a variety of other channels — including brokerage firms, fund companies, and financial advisors.