Each shareholder is entitled to profits when securities are sold and are subject to losses that the fund incurs, as well. The key to mutual funds, for the individual investor, is simplicity and ease. There is a professional managing your money, keeping records of your account, and spreading your investment dollars out over a wide array of investment options. Mutual funds allow the individual investor the opportunity to invest in securities that might be too expensive for them on an individual level. With the broad selection of mutual funds available and low minimum entry requirements , even the small investor can get involved in mutual fund investing.
Mutual funds are a diversified investment.
Assets are invested in a wide variety of securities. There are also many different choices amongst mutual funds, dependent on the objectives and growth strategies set forth by the fund managers. What you should do is learn the basics of mutual fund investing before you make any decisions. Rome wasn t built in a day and unskilled masons certainly didn t build it. Learn about mutual funds, then start building your portfolio.