Introduction to Mutual Fund Basics

Although many other kinds of investments can be structured to provide the benefits of mutual funds, mutual funds provide the convenience of having them all packaged and ready to go. Mutual funds are ready-made portfolios of securities designed to achieve specific investment goals. They have the advantage of professional management, diversification, and ease of transfer to other funds in the same family should your investment goals change. If you are new to investing, or if you have limited time to research individual stock and bond offerings, then mutual funds might be the way to help build your portfolio. All mutual funds come with a prospectus that gives you all the details you need to know in order to make an informed investment decision.