This can help shield you from large losses. Thus, you and your fellow investors share the expense of hiring a skilled portfolio manager who carefully chooses which assets to trade and hold. So, for just a tiny fraction of what it would cost to have your own personal money manager, you can benefit from professional expertise. If you have always hesitated to invest because you feared the expense, a mutual fund may be your ideal way to start investing on a small scale. Most mutual funds offer systematic investment plans, as well as automatic reinvestment of any dividends or interest paid by the portfolio's securities.
Some mutual funds carry sales charges called loads .
Typically these funds are sold through mutual fund companies themselves or through discount brokerage firms, without the benefit of personal investment guidance or service. All mutual funds charge annual fees, deducted from gross fund revenue, to pay for portfolio management, advertising, distribution, etc. Each mutual fund's investment objective determines the type of security held in the portfolio. Many highly specialized funds are available today. Usually these funds do not generate current income.