A fund that pools money from many investors and invests the money on their behalf. The taxes investors must pay annually on the gains they make from stock trades or mutual fund distributions. While Folios and stock mutual funds share some of the same benefits, they are completely different investment products. For many investors, the differences could prove profound. 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.