Your fund manager attempts to buy and sell securities at the times that will be best for the fund. Because your mutual fund buys and sells large amounts of securities at a time, its costs are often lower than what you would pay on your own. A variety of investment opportunities are available, including stock, bond and money market mutual funds. You don't have all your eggs in one basket. Mutual funds use diversification among many securities to protect against the failure of a single investment.
Most mutual funds are liquid, meaning they are easily turned into cash.
Remember, though, that the value of the shares you sell generally will not be determined until after the close of the business day you sell them. This is known as forward pricing, and all redeemable mutual funds are required to handle redemptions by this rule. Withdrawal charges may apply to redemptions of certain mutual funds shares. It is possible that you could lose money. Distributions are taxable.