Why are Mutual Funds so Popular?
Mutual funds provide an easy way for small investors to make long-term, diversified, professionally managed investments at a reasonable cost. If an investor only has a small amount of money with which to invest, then he/she will most likely not be able to afford a professional money manager, a diversified basket of stocks, or have access to low trading fees. With a mutual fund, however, a large group of investors can pool their resources together and make these benefits available to the entire group. There are no perks for the largest investor and no penalties to the smallest–all mutual fund holders pay the same fees and receive the same benefits. Mutual funds are also popular because they provide an excellent way for anyone to direct a portion of their income towards a particular investment objective. Whether you’re looking for a broad-based fund or a narrow industry-focused niche fund, you’re almost certain to find a fund that meets your needs. Although the various style and categor
