A mutual fund is an investment tool that is overseen by professional money managers who invest and manage money for shareholders (a group of people that own one or more stocks, bonds or other securities together).

Assets from a large group of people are pooled together and invested, according to a shared or "mutual" investment objective (examples: technology, corporations, global funds).

Mutual funds benefit investors because:

• You don’t have to manage it yourself. Your fund is managed by investment pros who carefully track securities and markets on a daily basis.Mixing up your investments among different things helps ease your overall investment risk, since no single holding dominates your portfolio.

• The ability to make small deposits over time makes it easier to invest.

• You can get to your investment dollars quickly and easily at any time through sale or exchange of your shares.

• You can keep an eye on your funds. Most every mutual fund offers online access and quarterly statements, annual reports and educational materials.

• You can pick what kind of investments you want.

If you would like to investigate how mutual funds might benefit you personally, your very own South Carolina Federal Credit Union offers a portfolio analysis through MEMBERS™ Financial Services.

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Asked by Sarah