If you are looking for a convenient, simple way to invest in the market, consider a mutual fund. A mutual fund is essentially a package of individual stocks, bonds, or other investment products that are managed by a professional fund manager. By combining different investments in one place, mutual funds allow you to broadly participate in the market in a cost-effective way.
Diversifying. Your. Portfolio.
Three words that strike fear in the heart of many investors. But the reality is, with the help of your financial representative to identify well-chosen mutual funds and exchange traded funds (ETFs), it can be relatively easy to keep your investment portfolio diversified.
A mutual fund is essentially a “basket” of individual securities that are managed by a professional fund manager. And because a mutual fund typically comprises many different securities within an asset class or combination of asset classes, it usually provides greater diversification than you could achieve on your own.
An ETF is an investment fund that holds individual securities in order to “track” an index or a specified basket of securities. ETFs trade like individual stocks and may be bought or sold throughout the day on publicly traded exchanges, thus allowing for changes in price with each trade. ETFs can be used on their own, or in combination with mutual funds, to meet various asset exposures within a diversified portfolio.
Investors should consider the investment objectives, risks, charges, and expenses of mutual funds carefully before investing. This and other information are contained in the fund's prospectus, which may be obtained from your investment professional. Please read it before you invest. Investments in mutual funds are subject to risk, including possible loss of the principal amount invested.