Mutual funds are entities that combine - or pool - many different investors' money into a single vehicle that purchases securities.

Why invest in mutual funds?

• Diversification: Mutual funds can typically buy many more securities than an individual could, spreading investment risk across a broader portfolio and potentially reducing overall risk.
• Professional management: Mutual funds are typically run by investment professionals with substantial experience and expertise in investing in the specific type of securities that the fund invests in.
• Economies of scale: Because of their size, mutual fund companies can spread the cost of researching companies, buying and selling securities, and administering funds over a large base, potentially reducing the costs that might otherwise erode investment returns. Although mutual fund investors incur certain costs and expenses, mutual funds can be a relatively cost-efficient way to invest in the capital markets. There are two components of mutual fund costs: operating expenses and, if you purchase fund shares though a financial professional, sales charges.
• Convenience: Mutual fund accounts are easy to establish, monitor and manage, particularly if you work with a financial professional. Your financial professional can help you complete a few simple forms to open an account.
• Liquidity: Although mutual funds are considered a long-term investment, mutual funds are required by law to redeem shares at the net asset value next calculated as of the close of the business day, after your redemption instructions are received, provided instructions are received in good order.