Getting Started

Understanding Mutual Funds

One way to cushion investment risk is to have a well-diversified portfolio; but without a sizable sum of money to invest, you may not be able to hold a large enough mix of stocks, bonds, and cash to give your portfolio the variety it needs. That’s where mutual funds enter the picture.

Mutual funds pool investors’ money to buy stocks, bonds, short-term investments, and other securities or assets. A fund may invest in only one asset class or in a combination of two or more classes. Browse through these brief descriptions of a few common fund types to see which ones match your objectives.