Professional management: With mutual funds, a professional money manager is responsible for the day-to-day investment decisions. The money manager is an expert and has been trained to make investment decisions. They have access to information and research unavailable to individual investors. Rather than you having to research every investment within the mutual fund before deciding to buy or sell, the money manager will decide the best mix of investments and will manage it all on behalf of the fund's investors.
Diversification: Diversification is key when it comes to investing. It allows you to minimize your investment risk because not all of your eggs are in one basket. Since mutual funds can invest in many things, your money is no longer dependent on the performance of one investment, but instead the average performance of all the investments held within the mutual fund. There is a wide variety of mutual funds that can meet all your investment needs.
Flexibility: For a minimum initial investment of only $500 you have access to a professionally managed portfolio. You can also establish a regular investing program for only $25 per month. You can choose the frequency that works best for you whether that's weekly, bi-weekly or monthly.
Record keeping: Mutual fund companies send you regular tax slips and statements to help you keep track of your investments.