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Why should I invest in a mutual fund?
Investing in a mutual fund gives you professional portfolio management, diversification, a choice of many different investment styles and objectives, easy access to foreign markets, dividend reinvestment, ease of buying and selling shares, and exchange privileges. On the downside, you won’t have absolute control over your investments; fund management makes investment decisions.Even more important are the tax implications: You may have to pay capital gains tax even if you don’t sell your shares -- when the fund sells stock, it passes the capital gains to you.Return to Questions
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