A mutual fund is an investment vehicle made up of a pool of money collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and other assets. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Why should I include a Mutual Fund in my portfolio?1
Diversification
You can invest in a single stock fund and have money invested in hundreds of individual stocks
Professional Money Management
Stock fund managers and analysts wake up each morning dedicating their professional lives to researching and analyzing current and potential holdings for their stock fund.
Systematic Investing and Withdrawals
Some mutual fund companies allow investors to invest as little as $50 per month directly into the stock fund without incurring a transaction charge.
1 https://www.thebalance.com/pros-and-cons-of-stock-mutual-funds-2466778
Disclosure: Mutual Funds are sold by prospectus. The price of mutual funds do fluctuate. Investors may incur a profit or a loss.