Individual Investor Contact Us Careers United Kingdom Our Company Products Fund Views Insights Resources Search Home Investor Education Introduction to Mutual Funds Share INTRODUCTION TO MUTUAL FUNDS A mutual fund offers investors the opportunity to pool their money with other investors in an investment that’s managed by professional investment managers. Mutual funds invest in stocks, bonds or other securities according to each fund’s objective. FOUR ADVANTAGES OF INVESTING IN MUTUAL FUNDS Investors turn to a mutual fund because of four distinct advantages they may offer over investing in individual securities. 1. Professional Management — A mutual fund offers investors access to full-time, professional money managers who have the expertise, experience and resources to actively buy, sell, and monitor investments. 2. Diversification — Buying shares in a mutual fund is an easy way to diversify your investments across many securities, which is just another way of saying that you won't have all your eggs in one basket. If one investment decreases in value, another investment in the portfolio may increase. 3. Affordability — For many people, it would be more costly to purchase directly all of the individual securities held by a single mutual fund. By contrast, the minimum initial investments for most mutual funds are more affordable. 4. Liquidity — Most mutual funds allow you to sell your fund shares on any day the stock markets are open, so you have easy access to your money. Of course, the value of your shares, when redeemed, may be worth more or less than their original cost. TYPES OF MUTUAL FUNDS Mutual funds come in many varieties, designed to meet different investor goals. Most of Franklin Templeton’s mutual funds fall into one of four main asset classes: Equity Funds Invest primarily in stocks and may focus on certain sectors of the market or may have a specific investment style. LEARN MORE Fixed Income Funds Invest primarily in bonds or other debt securities, and offer investors the potential for income generation and capital preservation. LEARN MORE Multi-Asset Funds Offer exposure to a broad number of asset classes, often offering a level of diversification typically associated with institutional investing. LEARN MORE Alternative Funds Invest in a variety of strategies and asset classes, and offer the potential to reduce volatility and improve portfolio returns. LEARN MORE HOW TO INVEST IN MUTUAL FUNDS Franklin Templeton mutual funds are available to buy through financial advisers because we believe investors can benefit from ongoing professional advice. Important Legal Information This document is intended to be of general interest only and does not constitute legal or tax advice nor is it an offer for shares or invitation to apply for shares of any of the Franklin Templeton Investments’ fund ranges. Nothing in this document should be construed as investment advice. Franklin Templeton Investments have exercised professional care and diligence in the collection of information in this document. However, data from third party sources may have been used in its preparation and Franklin Templeton Investments has not independently verified, validated or audited such data. Opinions expressed are the author’s at publication date and they are subject to change without prior notice. Any research and analysis contained in this document has been procured by Franklin Templeton Investments for its own purposes and is provided to you only incidentally. Franklin Templeton Investments shall not be liable to any user of this document or to any other person or entity for the inaccuracy of information or any errors or omissions in its contents, regardless of the cause of such inaccuracy, error or omission. Investments entail risks. The value of investments and any income received from them can go down as well as up, and investors may not get back the full amount invested. Past performance is not an indicator, nor a guarantee of future performance. Issued by Franklin Templeton Investment Management Limited, Cannon Place, 78 Cannon Street, London EC4N 6HL. Authorised and regulated by the Financial Conduct Authority. Telephone: 0800 305 306, Email: enquiries@franklintempleton.co.uk. Investments entail risks, the value of investments can go down as well as up and investors should be aware they might not get back the full value invested. United Kingdom Individual Investor This website is intended for residents of United Kingdom. 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