Mutual Funds

While not a common site a few decades ago, mutual funds are now one of the most common ways that people invest in stocks and other assets. Mutual funds allow the investors money to be pooled and then distributed over several investments. This allows diversification with less money than would have been required otherwise. For example, while it would take considerable money to buy even dollar amounts of all the S&P 500 stocks, you can buy a fund that allows you small portion of them evenly weighted.

Mutual funds offer investors many benefits including diversification and access to expert money management.