Demystifying Mutual Funds

If you’re like most people, you may be interested investing, but you may not have enough money to build a properly diversified portfolio by buying stock in individual companies. The solution? Mutual funds, which allow you to invest in a number of equities, bonds or even combinations of both. There are literally thousands of mutual funds you could possible invest in, so you need to work with a financial advisor who can direct you to those that match your investment priorities and risk tolerance. In addition to reading the prospectus of any fund under consideration, here are other key things to consider.