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A mutual fund offers
investors the opportunity

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to pool their money with other
investors in an investment

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that is managed by professional
investment managers.

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Mutual funds invest in stocks,
bonds, or other securities

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according to each fund’s objective.

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Investors turn to a mutual fund

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because of 4 distinct
advantages they may offer

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over investing in the
individual securities.

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These advantages are
professional management,

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diversification,
affordability and liquidity.

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First, professional management.

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A mutual fund offers investors access

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to full-time professional money
managers who have the expertise,

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experience and resources

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to actively buy, sell
and monitor investments.

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Second, diversification.

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Buying shares in a mutual
fund is an easy way

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to diversify your investments
across many securities,

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which is just another way of saying

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you won’t have all your
eggs in one basket.

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If one investment decreases in value,

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another investment in
the portfolio may increase.

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Third, affordability.

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For many people it would be
more costly to purchase directly

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all of the individual securities
held by a single mutual fund.

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By contrast, the minimum initial
investments for most mutual funds

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are more affordable.

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And finally, liquidity.

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Most mutual funds allow you
to sell your fund shares

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on any day the stock markets are open.

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So you have easy access
to your money.

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Of course the value of your
shares, when redeemed,

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may be worth more or less
than their original cost.

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Mutual funds come in many varieties,

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designed to meet
different investor goals.

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There are stock funds, bond funds
and even multi-asset funds,

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which invest in a portfolio
of many types of securities.

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Talk to your financial advisor today

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to find out if a mutual
fund is right for you.

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