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Why mutual funds?

A mutual fund is an investment vehicle made up of a large portfolio of stocks, bonds or other securities managed by a professional portfolio manager.

Mutual funds offer several important benefits:

  • Professional management. Mutual funds generally employ full-time portfolio managers to make investment decisions based on thorough research, independent analysis and forecasts of general economic and market trends.
  • Diversification. Mutual funds generally seek to minimize the risk of investing in stocks or bonds by diversifying fund holdings. While diversification does not offer protection against overall market swings, it does help protect against the poor performance of a single stock or bond.
  • Liquidity. Mutual fund investors can liquidate all or any portion of their shares at any time, in most cases with a simple phone call. Of course, since the investment return and principal value of a mutual fund investment will fluctuate, the value of your shares at the time of redemption may be more or less than their original cost.

Learn more with our Understanding Mutual Funds brochure

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