The money raised is then invested in accordance with pre-defined goals that are stated in a prospectus. Diversification Owning shares in a mutual fund allow an investor to participate in a diversified portfolio. Convenience Mutual funds offer many conveniences. Investment programs can be started with relatively small amounts of money. Dividends and other gains can be automatically reinvested.
Many funds offer features to automate both contributions and withdrawals.
Regular fund statements ease bookkeeping by tracking an investor's purchases, withdrawals and reinvestments, as well as providing tax information. Mutual Funds are not guaranteed investments, so be sure that the choices you make accurately reflect your risk tolerance and investment objective. All Rights Reserved. Please read the important disclaimer regarding material presented on this site and our Privacy Policy Statement . We'd love to hear from you .