Mutual funds (or investment funds) pool the resources of individual investors, and then hire investment experts to make the most appropriate investment, so as to achieve the expected goals of investors.

Today's financial market is becoming more and more complicated. Through mutual funds, investors spread their funds into a portfolio including various securities (such as stocks and bonds). This is a simple, convenient and time-saving investment method, which cannot be done by individual investors alone. Mutual fund investors can reduce investment risks through this diversified investment.

investors can choose suitable mutual funds to achieve their investment goals. For example, some investors want to increase their current income as much as possible, while others want their funds to grow in the long run, or it is best to have both. Professional investment experts use the funds collected by the fund to buy a variety of bonds, stocks or bills to help investors achieve their own goals. These securities become the main part of the fund, and the income earned will be distributed to investors. Investors can reinvest their earnings and buy more shares (units) of mutual funds.

fund investors buy funds by units, that is, each unit they buy becomes the holder of the unit and owns the securities belonging to the unit, and dividends and capital appreciation are distributed according to the number of units occupied by the holder. Therefore, no matter whether it is a large investment or a small investment, the rate of return per yuan of investment is the same.