Mutual funds are a collection of stocks, bonds and other securities that are owned by a group of investors and overseen by an investment professionals or fund managers. You can own a part of these funds by buying units and becoming a unitholder. The fund managers invest the money in a variety of opportunities with the expectation of increasing the fund’s value.
- Diversification: mutual funds invest in a broad range of securities and asset classes
- Professional Management: specialized knowledge and research in buying & selling securities
- Convenience: benefits of a diversified portfolio with just one purchase
- Ease of Investing: can open, add to or redeem your account on any business day
- Purchasing Power: only wealthy investors could accumulate positions similar to mutual funds
- Liquidity: investors can easily sell units at any time
- Flexibility: there is a fund to match virtually every investing need
- Record-keeping Service: confirmation of transactions and necessary reporting for tax purposes
- Investor Protection: mutual funds are highly regulated, ensuring operating standards
- Distribution Options: earnings distributed to unitholders in a variety of beneficial ways
