A mutual fund pools money from many investors who share the same investment objective as the fund.
Mutual funds give everyday investors a variety of investment opportunities.
For people who don t have the knowledge, time or money to create a portfolio of individual securities, mutual funds offer important benefits. More Professional management Investors benefit from the knowledge and experience of professional investment managers who are dedicated to security analysis, evaluation and selection. More Liquidity Investors have immediate access to their money by selling shares at the fund s net asset value. Not putting all your eggs in one basket is an important way to limit risk. Because mutual funds generally invest in a wide range of securities, like stocks and bonds, they provide immediate diversification.