What Are Mutual Funds and Why Are They Ideal for Small Investors Seeking Diversification, Safety, an
Mutual funds are investment vehicles that pool money from many investors to buy a diversified portfolio of stocks, bonds, or other assets. These funds are managed by professional fund managers.
The biggest advantage of mutual funds is diversification. Instead of investing in just one stock, your money is spread across many companies or sectors, which reduces the risk of loss. This makes mutual funds ideal for beginners or people with limited financial knowledge.