Mutual Funds Market Research Reports & Industry Analysis

A mutual fund is a type of collective investment. These collective investments are a collection of money from many investors. These mutual funds are then professionally managed to buy stocks, bonds or other securities including short-term money market instruments.

There are several types of mutual funds which may have different advantages and disadvantages. These include open-end funds, closed-end funds. Two other types of mutual funds are exchange-traded funds and unit investment trusts.

Mutual funds gained popularity in the United States beginning in the 1920s. The popularity of mutual funds has changed as the confidence in the stock market has altered over time.

There are many advantages to mutual funds. Service and convenience, professional investment management, ease of comparison and government oversight are a few of the top advantages of mutual funds. Other advantages include daily liquidity and increased diversification. Mutual funds may also give investors the ability to participate in investment opportunities which are normally only available to larger investors.

However, mutual funds may not be for everyone. There are some disadvantages to mutual funds. They are not able to be customized in the same manner as other investments. The outcomes may be less predictable and there is less control over the timing of recognition of gains. Also, there are many fees involved with investing in mutual funds.

In the United States, some of the top mutual fund complexes are Fidelity Investments, Vanguard Group, Goldman Sachs and Co, JP Morgan Chase and Co and BlackRock Funds.