Investing in mutual funds has become a great American pastime - for good reason. Mutual funds allow people to easily invest in a diversified portfolio of stocks. They are managed by investment professionals, who pick stocks on investors' behalf. And they are simple to invest in. You can purchase them in dollar amounts, for example, not shares.
Folios provide many of the same benefits.
They can provide instant portfolio diversification. And they also let people invest in them using modest dollar amounts, not shares. Indirect vs. direct ownership . Mutual fund investors own shares of the fund, not the individual stocks that make up the fund. Folio investors own company stocks directly.