Mutual funds are among the most popular ways to invest - and for good reason.
When you invest in a mutual fund, you join other investors, pooling your money to purchase securities and pursue a specific objective. If you don't have the time to follow the markets, the experience to manage a portfolio, or the resources to diversify on your own, mutual funds may offer you four important advantages. By pooling the resources of many investors, mutual funds are able to purchase a broader range of securities than most individuals can afford on their own. While the types of securities a fund may purchase will depend on its investment objective, diversification is widely recognized as a way that may help reduce investment risk. Convenience Mutual funds may be a convenient and affordable way to invest.