THE POPULARITY OF MUTUAL FUNDS
Mutual funds are common investments because they provide a cost-effective and effective means to vary your investments (or possess an assortment of securities -- stocks, bonds, etc.) without having to make a huge starting investment.
BASICS ABOUT INVESTING IN MUTUAL FUNDS
Buying shares of a mutual fund allows you to pool your money with other investors and letting the mutual fund (which is essentially a professional capital management firm) invest and administer the money to aid in achieving the fund's targeted financial objective (e.g., income, growth, or a mixture of both). This allows you to fast-track the setting up of a multi-faceted portfolio with as little investment as possible.
WHEN TO CONSIDER INVESTING IN MUTUAL FUNDS
Since they are efficiently administered by experts and because they provide variety with essentially low starting cash input, mutual funds can be a viable option for the majority of investors. Many investors opt to invest in mutual funds instead of selecting a vast assortment of particular investments.