This paper provides an overview of
mutual funds,
investment vehicles that pool the money of thousands of
investors to invest in a wide variety of securities with a specific objective. It discusses how mutual funds provide professional management and diversification and, because of this, are safer and less volatile than individual stocks or
bonds. It examines how different classes of mutual funds have different objectives, such as growth, growth and income, income, etc. and how the mutual
Fund or funds that investors select reflect their objectives and tolerance for risk. Table of contents: Introduction Types of Mutual Funds Mutual Fund Fees Distributions and Their Tax Consequences Kinds of Funds Available My Investment Options Conclusion Bibliography