When you invest in a mutual fund, you join other investors with similar financial goals whose money the portfolio manager has pooled to invest in a portfolio of stocks, bonds, money market instruments, and other securities. Investments in a mutual fund are selected and monitored by a professional portfolio manager who decides when to buy and sell the investment held by the fund, based on the fund’s investment objectives.
Portfolio DiversificationMutual funds invest shareholders’ investments across many securities to help reduce the risk to the fund and exposure to any one security. Of course, diversification cannot guarantee a profit or protect your portfolio from loss.
Professional ManagementIf you don’t have time to study the forces and trends that influence the economy and financial markets, then mutual funds might be a good option for you. Mutual funds allow you access to professional portfolio managers who manage the investments so you don’t have to.
LiquidityMutual fund investors can buy or sell shares at any time at their current net asset value (NAV).1 Since it’s easy to enter and exit the fund, mutual funds can be an attractive option, especially when compared to less liquid investments.
1Sales charges may apply to some purchases and sales.
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