A mutual fund is an investment vehicle that purchases stocks, bonds, or other securities on behalf of its shareholders. When individuals buy shares in a mutual fund, their money is combined with money from other shareholders to buy shares in individual securities. The combined dollars are invested and managed by professional money managers. Each shareholder earns a share of interest or dividends earned by the investments in the fund.
Mutual funds are one of the most popular investment vehicles avalible because they provide:
- The ability to invest in a variety of securities, providing diversification that can lessen risk
- Professional management
- Low cost to start investing - as little as a few hundred dollars can get you started in investing in mutual funds
Mutual funds aren't totally insulated from risk. When deciding what type of fund to choose, you need to consider the risk versus return level of various fund types, make sure that you trust the fund manager, and read the prospectus for information on fees and potential risks. Money Concepts offers mutual funds for all types of investors, managed by seasoned professionals that you can trust.
An investor should consider the funds investment objective, risks, sales charges, expenses, and ongoing fees carefully before investing or sending money. This and other important information about the investment company can be found in the fund's prospectus.
Contact a Money Concepts Investment professional to determine if mutual funds are right for you and what types you should consider.