Mutual funds offer investors a simple, convenient, less time consuming method of investing in a diversified portfolio of securities. Investment risk is limited because mutual funds invest in a broad range of securities. Back To Top Major Advantages of Mutual Funds Professional management you can afford . Few of us have the time or knowledge to research and track the performance of a variety of stocks, bonds, and other investment options. With mutual funds, someone else does that for you.
Every fund has an investment management team.
These professionals work full-time tracking market trends, evaluating the general condition of the economy, researching companies and monitoring the fund's investments. All of this information helps them to decide when to buy or sell. This service is not free. Annual management fees run from .5 percent to 1.5 percent of the fund's assets. By investing in a large number and wide range of securities, mutual funds moderate risks and enhance potential returns.