A mutual fund is an investment that pools together money from different investors to buy investment assets such as stocks, bonds and other securities. Mutual funds offer investors an opportunity to participate in a more diversified portfolio than can normally be created on their own since mutual funds are managed by professional fund managers who make investment purchases on your behalf.
Some common types of mutual funds include: money market funds, stock funds, bonds funds and target date funds. As with most investments, time is critical to growth. It’s recommended that you keep your mutual fund for at least 8-10 years to allow sufficient time to grow your initial investment.