A mutual fund offers investors access to full-time, professional money managers who have the expertise, experience and resources to actively buy, sell, and monitor investments
Four Advantages Of Investing In Mutual Funds
Investors turn to a mutual fund because of four distinct advantages they may offer over investing in individual securities.
1. Professional Management
2. Diversification
Buying shares in a mutual fund is an easy way to diversify your investments across many securities, which is just another way of saying that you won't have all your eggs in one basket. If one investment decreases in value, another investment in the portfolio may increase.
3. Affordability
For many people, it would be more costly to purchase directly all of the individual securities held by a single mutual fund. By contrast, the minimum initial investments for most mutual funds are more affordable.
4. Liquidity
Most mutual funds allow you to sell your fund shares on any day the stock markets are open, so you have easy access to your money. Of course, the value of your shares, when redeemed, may be worth more or less than their original cost.
Types Of Mutual Funds
Mutual funds come in many varieties, designed to meet different investor goals. Most of Franklin Templeton’s mutual funds fall into one of four main asset classes:
How To Invest In Mutual Funds
Franklin Templeton mutual funds are available to buy through financial advisers because we believe investors can benefit from ongoing professional advice.