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        Quickstart of Mutual Funds Investing

        Views 4712022.09.21

        What are the advantages of mutual funds?

        Key Takeaways

        Mutual funds have five main advantages: low cost, professional management, diversification, liquidity, and safety.

        Understanding the advantages of mutual funds

        Mutual funds are popular among investors for the following reasons:

        Low Cost. 

        Rather than saving enough money to buy more costly financial assets, such as Google stock, major commodities, and real estate bonds, investors can purchase mutual funds in smaller denominations, ranging from $100 to $1,000. Mutual funds enable individual investors to participate in investments that may only be available to big investors previously.

        Professional Management. 

        It is one of the most important advantages of mutual funds. Each mutual fund is managed and operated by a fund manager who graduates from a famous university with deep investment knowledge and rich investment experience. Since fund managers take care of all the challenges, investors can sit back without keeping regular track of market movement. 


        It is effective in mitigating risks. As mutual funds invest in different assets such as equity, gold, and debt, investing in mutual funds is the easiest way to achieve diversification for investors.


        Mutual funds are easier to buy and sell than tangible assets, such as cars or houses. Investors can liquidate their investment into cash easily by redeeming part of the whole fund securities.


        In the U.S., mutual funds are under stricter regulation than other pooled investment vehicles. These funds must comply with at least three federal legislations and closely monitor the SEC (United States Securities and Exchange Commission). This protects the interests of the investors to a large extent. Moreover, the SEC requires all the mutual funds to file shareholder reports in a regular basis. Thus, investors can trust the information disclosed by mutual funds.

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        This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information having regard to your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty as to its adequacy, completeness, accuracy or timeliness for any particular purpose of the above content.

        Moomoo is a financial information and trading app offered by Moomoo Technologies Inc.

        In the U.S., investment products and services available through the moomoo app are offered by Moomoo Financial Inc., a broker-dealer registered with the U.S. Securities and Exchange Commission (SEC) and a member of Financial Industry Regulatory Authority (FINRA)/Securities Investor Protection Corporation (SIPC).

        In Singapore, investment products and services available through the moomoo app are offered through Moomoo Financial Singapore Pte. Ltd. regulated by the Monetary Authority of Singapore (MAS). Moomoo Financial Singapore Pte. Ltd. is a Capital Markets Services Licence (License No. CMS101000) holder with the Exempt Financial Adviser Status. This advertisement has not been reviewed by the Monetary Authority of Singapore.

        In Australia, financial products and services available through the moomoo app are provided by Futu Securities (Australia) Ltd, an Australian Financial Services Licensee (AFSL No. 224663) regulated by the Australian Securities and Investment Commission (ASIC). Please read and understand our Financial Services Guide, Terms and Conditions, Privacy Policy and other disclosure documents which are available on our websites and Moomoo Technologies Inc., Moomoo Financial Inc., Moomoo Financial Singapore Pte. Ltd. and Futu Securities (Australia) Ltd are affiliated companies.