Mutual Funds Investments
A mutual fund is a pool of money from numerous investors that can be sold individually at any time. Investing in mutual funds diversifies one’s portfolio across a large number of securities, which minimizes risk to the individual investor. The investment objective is set by the fund manager when deciding on the stocks, bonds, and other investment opportunities found within the fund’s portfolio.
- Professional Management:Investments are chosen and monitored by qualified professionals, and a portfolio is created consisting of,
- Stocks
- Bonds
- Money Market Instruments
- Combination of the above.
- Fund Ownership: Ownership is over the shares owned in the mutual fund, not the
individual securities. Ownership allows for,
- Investments of small or large amounts of money.
- Benefits of being involved in a large pool of cash.
- An equal share in gains and losses proportionally based on the individual investment.