What is a mutual fund and what are the advantages of investing in a mutual fund?
A mutual fund is a pool of money invested in a group of assets managed by a third party. Mutual funds offer investors diversification, economies of scale, professional management, and timely reporting. When you invest money in a mutual fund, it is pooled together with money from other investors. These pools of funds are directed into investments consistent with the fund’s objectives, which may range from a general mandate to invest in stocks and bonds, to a specialized mandate to invest in a particular geographic region or economic segment.
