Mutual Funds Mutual funds are an efficient way to achieve economies of scale when managing investments such as shares, bonds, money markets, foreign currencies, or combinations thereof. A mutual fund investor becomes a shareholder of the mutual fund itself, obtaining dividends from earnings generated or from participation in capital appreciation. There are various types of mutual fund categorizations:
- By their level of investment risk (shares, bonds, foreign currencies and others).
- By their type of investment assets.
- By their geographical focus or market segmentation.
- Investment diversification.
- Choosing mutual funds based on an established investment profile.
- Professional investment management.
- It is a simple, transparent and comfortable way of investing.