Despite the scandals that have haunted parts of the mutual fund industry in recent years, funds continue to be widely used for the same reasons that have attracted investors since the 1970s. You have access to an enormous variety of funds, all of which provide a statement of their
investment objectives
and investing styles, as well as regular updates on performance history, fees, and other relevant issues. You can invest relatively small amounts of money initially, reinvest or add new
assets
easily, benefit from professional money management, and sell quickly — though the price may be more or less than you paid to buy.
Funds are also highly regulated, an effort meant to ensure that investors who do their homework and exercise reasonable caution won't be exposed to inappropriate
risk.
That scrutiny has increased in response to evidence that some funds had permitted favored clients the opportunity for
market timing
and late trading, practices that penalize long-term shareholders by raising portfolio expenses.
