You could make many of the same investments that managers of mutual funds make. There are several advantages. It's their full-time job, so you don't have to spend the time making these investment decisions on your own. Professional managers also have access to information and research that isn't readily available to individual investors. Diversification A second advantage is something called diversification .
Diversification means owning several different investments at once.
But not all investments are likely to go up or down at the same time, or to the same extent. Diversification may help your portfolio achieve better returns over the long term. Since mutual funds typically hold 30 or more investments, they offer a simple way to diversify your portfolio. Easy access to your money Unlike some other types of investment, mutual funds are liquid . Mutual fund companies help you with the details by sending you regular financial reports, tax slips, and statements.