A mutual fund investor becomes a shareholder of the mutual fund itself, obtaining dividends from earnings generated or participation in capital appreciation. There are a number of different types of mutual funds.
- Mutual funds that vary based on the level of investment risk (stocks, bonds, currencies and others).
- By type of assets.
- By geographical focus or market segmentation.
The main benefits of investing in mutual funds are:
- Investment Diversification
- Choosing mutual funds based on the established investment profile.
- Professional investment management.
- A simple, transparent and comfortable way of investing.