The Easy Way to Diversify Your Portfolio
Mutual funds allow for diversification of investment holdings. When you buy mutual fund shares, you invest in a fund that owns various stocks, bonds or other securities.
The Benefits of Investing in Mutual Funds
Mutual funds might appeal to some investors for the following reasons:
Professional management. The decision to own particular stocks, bonds or other securities is made by financial experts who study financial, economic and other factors
Diversification. If there is a decline in the value of one or more securities in the fund's portfolio, that decline may be offset or reduced by increases in the value of other securities the mutual fund owns
Affordability. In a mutual fund, multiple investors contribute to a shared pool to build a portfolio of securities, making it easier for individual investors to take advantage of the total pool with a moderate minimum investment
It's important to understand that diversification of investments does not ensure a profit or protection against loss.
Like all investment options, mutual funds may not be suitable for everyone. Speak to an M&T Securities Financial Advisor to learn about additional risks and considerations and see if it's a good option for you.