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Mutual Funds Give Investors Many Advantages

Radio Transcript, 60 seconds, for use during week of Nov. 19.

This is an Invest Wisely minute brought to you by Iowa State University Extension.

Mutual funds offer many advantages for individual investors.  By pooling money from many investors, a mutual fund company provides diversification and the skills of professional managers.  Investments may be stocks, bonds or cash instruments.

Other advantages – mutual funds can easily be converted into cash. Also, the ease of purchase and the smaller minimums to invest make mutual funds attractive.

When selecting a mutual fund, pick one whose objectives and risk level match your own. For example, if you’re retired you may want a fixed-income fund or a growth and income fund.

Invest Wisely comes from Iowa State University Extension through a grant from the Investor Protection Trust providing investor education on the web at investorprotection.org.

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Updated November 19, 2007