Mutual Funds Are a Lot Less Scary Than They Sound, and This Cartoon Proves It

When you want to start investing, you often don’t know where to begin. Charts and numbers fly at you left and right. Scary terms like “alpha” and “P/E Ratio” are thrown around without explanation. Serious-looking talking heads on TV give conflicting and confusing advice.

The sheer volume of financial information and data is often what keeps many people from investing in the first place. There is a way, however, to invest your money in the stock market without ever having to consult a stock chart: through a mutual fund, of course.

Mutual funds let a broker buy and sell stocks not just for you, but a whole group of likeminded investors. To give you a better idea of how this works, the folks at Wall Street Survivor created this amazing two-minute video to demystify this scary-sounding but mostly harmless way to invest. Take a look:

Investing in a mutual fund is simply getting a broker to invest for you while you watch the market go up and down. Plus, since your broker gets paid more when you make more money, they’ll pull out all the stops to try and maximize your investments. It’s a win-win!

Share this video with your friends below, and maybe stop watching CNBC while you’re at it!