A mutual fund is an investment vehicle that pools your money with the money of many other people who have similar investment goals. Professional money managers use this pool of money to buy securities that, in their judgment, will help achieve your specified financial objectives. Mutual funds may be an appropriate retirement investment choice because they offer both professional management and diversification. Mutual funds are not FDIC-insured. The value and growth of your mutual fund may fluctuate with market conditions.
Mutual funds offer a quick, efficient, and cost-effective means of managing money.
They provide professional management, ongoing supervision of your holdings, and automatic diversification all important elements of a well-rounded investment program. Investment return and principal value will vary with market conditions and an investor's shares, when redeemed, may be worth more or less than their original purchase price. This is surely among the most frequently asked questions about mutual funds, especially among novice investors. With over 8,000 mutual funds currently on the market, the question becomes more compelling than ever. However, the task is not as forbidding as it may seem.