Jasz
VIP Contributor
Mutual funds are investment products that pool the money of many investors to buy shares in one company. The idea is to spread the risk among many investors, who then get a better return on their investments than they would have if they had invested their own money.
Mutual funds are easy to set up and administer — you don't even need to know how to invest! You just go online, choose the kind of fund you want, pick a few companies in which you want to invest, and then choose the amount per share that you want to invest.
You can also buy mutual funds through a broker and through an investment firm. If you use an online brokerage, you can buy mutual funds without having to deal with a broker at all.
But before you dive in, here are some things you should consider:
1. How do I choose mutual funds?
2. What's the difference between index funds and exchange-traded funds?
3. Are there any downsides to mutual funds?
Mutual funds are easy to set up and administer — you don't even need to know how to invest! You just go online, choose the kind of fund you want, pick a few companies in which you want to invest, and then choose the amount per share that you want to invest.
You can also buy mutual funds through a broker and through an investment firm. If you use an online brokerage, you can buy mutual funds without having to deal with a broker at all.
But before you dive in, here are some things you should consider:
1. How do I choose mutual funds?
2. What's the difference between index funds and exchange-traded funds?
3. Are there any downsides to mutual funds?