A mutual fund is an investment scheme where a group of investors pool their money and hire a portfolio manager. The manager invests the pooled money in securities such as stocks, bonds, money market instruments and similar assets. The fund manager buy and sell stocks and securities according to the investment objectives stated in its prospectus.
Investing in mutual fund is a way for investors-like-me, who don’t have the resources or the time to buy individual stocks, to get a piece of the market.
But of course, there are advantages and disadvantages alike in mutual fund investing. Finding the right mutual fund company should not be considered lightly also.
The first step to mutual fund investing: prospectus. Start collecting and comparing - now.