What do mutual funds allow investors to gain access to?

Mutual funds are investment vehicles that pool money from multiple investors to invest in a diversified portfolio of assets. By offering a wide variety of investments, mutual funds allow investors to gain access to a broad range of securities, including stocks, bonds, and other financial instruments. This diversification helps reduce risk as investors are not relying on the performance of a single investment.

The appeal of mutual funds lies in their ability to provide individual investors access to a professionally managed and diversified portfolio that they might not be able to achieve on their own. This means that through mutual funds, investors can participate in various asset classes and investment strategies, which can enhance their potential for returns while managing risk effectively.