What Is a Mutual Fund?

22 Nov What Is a Mutual Fund?

A lot of people ask what a mutual fund is. If you’re putting together a portfolio of investments for your future, you’ve probably come across mutual funds.

A mutual fund is managed by a professional manager who, based on some pre-determined goal, will buy stocks and put them into a package that you can purchase in the form of a mutual fund.

With a single purchase, you’re able to gain possibly broad diversification or access to a large cross-section of stocks that you may be interested in including in your portfolio.

Some of the advantages are that you’re able to get broad diversification for a very low cost because you’re only buying a few mutual funds in order to get a huge amount of stock exposure.


Parkshore Wealth Management is a family-owned, independent, fee-only Registered Investment Advisor serving the greater Sacramento area with an office in Roseville, CA. We partner with financially responsible individuals and families who are eager to take positive steps that will allow them to use their money to build the life they desire. The firm is led by Harold Anderson, CFP®, and Daniel Andersen, CFP®, both members of NAPFA, the country’s leading professional association of fee-only financial advisors.

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