Mutual funds are one of the most popular ways to invest. With a mutual
fund, your money is pooled with that of other investors to purchase
a variety of securities (stocks and/or bonds). The fund is professionally
managed as a single investment account. Mutual funds offer you automatic
diversification because each fund invests in several different securities.
You can choose from thousands of stock, bond, balanced (stocks and bonds),
and money
market mutual funds. Each fund is managed toward a particular investment
objective such as growth, income, or asset preservation. When choosing
investments, potential return is a key consideration. The higher your
return, the faster your investments will grow and the sooner you will
reach your goal.
