Mutual fund

A mutual fund pools together funds of member investors and invests on their behalf. Its greatest advantage is that the pooled resources are invested in diversified large portfolios.

This investment fund gives investors an opportunity to participate in the market far more in a big scale than an individual investor can.

The largest segment of the fund industry focuses on stocks, and just under half of the assets held by the industry are stocks. Within that universe, investors have an eye-popping number of options: index funds, growth funds, sector funds and many more.

Fidelity Investments, one of the biggest investment fund companies in the world, has about forty-five different kinds of stock funds focused on the United States alone.

Fidelity gives investors investment options that focus on small stocks, mid-sized stocks, dividend-paying stocks, growth funds and value funds. If you’ve got an investment notion, chances are that Fidelity has a fund that would fit. And it’s not just Fidelity.

Other big fund companies, such as Putnam Investments and Janus Investment Professionals, also offer a range of investing choices Mutual fund helps individuals to improve their earnings through pooled resources.