Mutual funds are convenient for investors who don’t have the time to spend researching their investment choices or aren’t interested in or feel qualified to manage their own investments.
Through a mutual fund, you can invest in a professionally managed, diversified portfolio of stocks without plunking down a huge amount of money. You are essentially buying fractional shares. Through a mutual fund you can own the stocks of hundreds of companies with just a small investment. And mutual funds offer the convenience of liquidity; it’s easy to get in and out of them.