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Mutual funds are another means for people to invest, generally with a lesser risk and lesser returns too. But how are they different from stock market? Here's how: People from diverse backgrounds come and invest a part of their earnings in mutual funds, which in turn, results in a large capital in the hands of these Mutual Fund companies. These companies have a group of people, referred to as 'Fund Managers', who are having a great experience and sound understanding of how markets behave. The Fund Managers then invest the colossal capital from mutual funds into shares and overall financial market.
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