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.
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.
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.
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.
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.
Invest primarily in stocks and may focus on certain sectors of the market or may have a specific investment style.
Invest primarily in bonds or other debt securities, and offer investors the potential for income generation and capital preservation.
These invest in both Equities and Fixed Income, thus offering the best of both, Growth Potential as well as Income Generation. Examples would be Aggressive Balanced Funds, Conservative Balanced Funds, Pension Plans, Child Plans and Monthly Income Plans, etc. Mutual funds are a great way of investing your money to get a good return. With Invest & Insure find out which funds can help you nurture your dreams.
