Most funds practice an active management approach by employing professional investment managers who expertly invest shareholder contributions. These money managers attempt to meet or exceed the fund s investment goals by making the greatest investment income with minimal risk to the shareholder. The levels of risk and return vary according to the markets a fund in which a fund primarily invests. Broad diversification reduces the risk associated with owning only one or a few securities and is therefore mutually beneficial. The other benefit of mutual funds is the shared objective of the fund.
Most funds invest in market niches such as money markets or domestic growth companies.
Investors join a fund because of this mutual interest in a particular market. Mutual funds should be selected according to a person s life planning strategy. In other words, people should select mutual funds according to their time horizon and tolerance for risk . Mutual fund returns are not guaranteed. The Fidelity Group The Fidelity Group of mutual funds was established in 1946.