Columnist Most of us know we should invest a portion of our money to help meet future financial needs. But for those of us with little investment knowledge or time to monitor investments, a foray into the stock market can be intimidating or even worse disastrous. If you fall into this category, investing in mutual funds may be your best bet. A portfolio manager and research team manage the funds by researching various investments, analyzing financial statements and deciding when to buy and sell.
Many mutual funds allow a low minimum investment.
Your contributions to the fund are used to buy shares the number of which is determined by the price per share when purchased. Fund investments are diversified. A typical mutual fund is invested in as many as 100 or more securities. This diversification helps to spread the risk if one or more stock value drops. You have easy access to your money and a simple method of monitoring your fund s progress.