▪ A mutual fund is a portfolio that may contain bonds, stocks or other investable assets like money market products that are selected and managed by a professional fund manager.
▪ It pools your money with other investors and provides access to investments that you may not normally have access to as an individual investor.
Mutual fund returns may consist of dividends and interest, or capital gains from the fund’s sale of securities.
▪ Typically, the money you have invested in mutual funds is not locked in. You may request to redeem your holdings.
▪ Having a professional fund manager manage investments is a big advantage, but there are costs associated with that. Fees are charged directly to the fund as a percentage of the fund’s assets