Benefits of Mutual Fund Investing
1. Professional money management
The pool of money that investors contribute is invested by experts in the financial markets. These money managers have the knowledge and information necessary to make informed investment decisions according to the fund’s objectives.
Because investors contribute to a large pool of money, managers can easily diversify between many individual securities, so fund returns are not heavily dependant on the ups and downs of a few select investments.
Mutual funds are very convenient since they can be quickly bought and redeemed. Investors should read the simplified prospectus of the mutual funds they own for further details.
Depending on your financial goals and tolerance for risk there are a wide range of mutual funds available to you. Please seek the advice of an advisor to ensure that the investment you choose complements your overall financial plan.
The mutual fund company does all the record-keeping, providing regular reports and the appropriate tax forms for your investments.