If you’re looking for a way to invest in the stock and bond markets but don’t have the time or experience to develop and monitor a portfolio of individual securities, consider mutual funds. Offering diversification, professional management and flexibility, mutual funds can be a beneficial tool for investing.
What Is a Mutual Fund?
A mutual fund is an investment that combines money from thousands of individual investors into one large pool. This money is then invested into a broad range of stocks, bonds or a combination of both. Run by a professional money manager, the fund is owned by the many individual investors who’ve purchased shares in the fund. Depending on the types of investments a fund owns, the risk levels can vary. Mutual funds are very popular investments inside savings vehicles such as 401(k)s, IRAs and 529 College Savings Plans.
Contact Royce Williams today if you are thinking about setting up a mutual fund and need help.