When you purchase a mutual fund, you are pooling money with other investors. The money pooled together by you and other investors are managed by a fund manager who invests in financial assets such as stocks, bonds, etc. The mutual fund is managed on a daily basis

Mutual funds are actively managed by a professional who constantly monitors the fund’s portfolio. In addition, the manager can devote more time selecting investments than a retail investor would.

Mutual funds allow for investment diversification. A mutual fund invests in several asset classes and not just a single stock or bond.

Mutual funds possess high liquidity. In general, you are able to sell your mutual funds within a short period of time if needed.