ABSTRACT
The manager of the mutual fund uses the pool of capital to buy a variety of stocks, bonds, or money market instruments based on the advertised financial objectives of the fund. These objectives cover a wide range. Some funds follow aggressive policies, involving greater risk in search of higher returns. Others seek current income and no risk. Since each mutual fund has a specific investment objective, the investor has the ability to select a variety of funds to meet asset allocation and diversification needs.
