A mutual fund is a type of investment that pools money from many investors and invests it in a diversified portfolio of securities like stocks, bonds, or other assets. It's a common and accessible way for individuals to invest in a wide range of assets, offering professional management and diversification benefits that may be difficult to achieve independently.
Professional Management: You benefit from the expertise of professional fund managers who handle the investment decisions
Diversification: Mutual funds help reduce risk by spreading your investments across multiple securities.
Affordability: Many mutual funds have relatively low minimum investment amounts, making them accessible to a wider range of investors.
Liquidity: Mutual fund shares can be easily bought or sold at the end of each trading day at the fund's NAV.
Tax Efficiency: Selling securities within a mutual fund can trigger capital gains distributions, which are taxable events for investors, even if they haven't sold their shares.
