| A mutual fund is a efficiently managed type of | | | | mainly for small investors, because they diversify |
| collective investment system that pools money | | | | an individualâs monies among a number |
| from many investors and invests generally in | | | | of investments. Investors share in the profits of a |
| investment securities (stocks, bonds, short-term | | | | mutual fund, and mutual fund shares can be sold |
| money market instruments, other mutual funds, | | | | back to the company on any business day at the |
| other securities, and/or commodities such as | | | | net asset value price. Mutual funds may or may |
| precious metals). | | | | not have a load, or fee; however, funds with a |
| Mutual funds are divided into shares and can be | | | | load will offer advice from a specialist, which may |
| bought much like stocks, allowing mutual funds to | | | | help the investor in choosing a mutual fund. |
| have a high liquidity. Mutual funds are handy, | | | | |