BlackRock Mutual Funds

A mutual fund is a professionally managed portfolio of stocks and/or bonds. Investors buy shares in the fund and the mutual fund company pools that money to make investments on their behalf. A share represents a portion of the fund's holdings.

Mutual funds are organized around a specific investment strategy or asset class. For instance, investors might buy shares in a mutual fund focused on fixed income products, specific geographies such as Europe or Latin America or targeted investment outcomes.

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Potential benefits of mutual funds

Diversification
Because mutual funds can invest in many different stocks or bonds, they give investors an easy way to diversify their portfolio.
Low cost
Mutual funds offer an affordable way to invest in a wide array of stocks without paying transaction fees for each stock held.
Management
Experienced investment teams set the fund's strategies, research investments, make trades and monitor the fund's performance.

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Featured fixed income funds

  • 19 of 25 U.S. bond funds, accounting for 97% of our assets, outperformed within their Morningstar peer groups.*
  • 22 of 25 U.S. bond funds, accounting for 88% of our fixed income funds, are priced in the least expensive quartile†

Featured equity funds

Our equity funds are positioned for income and income growth in uncertain markets.

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Featured multi-asset funds

Multi-Asset funds are designed to deliver improved outcomes by eliminating traditional investment boundaries and dynamically adjusting portfolios over time.

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More about mutual funds

Important factors to consider when investing in mutual funds

When it comes to selecting a mutual fund, investors have a lot of choices. However, considering a few important factors can help make the decision easier. In reviewing mutual fund options, be sure to evaluate your:

  • Goals - What do you want from your investment? Are you saving for your retirement, your children's college or investing money for future generations? The answers to these questions can help narrow down which funds would work best.
  • Time horizon - Equally as important, you should know how much time you have to devote to that goal. If you think you'll need your money in the near future, say within three years to five years, then a mutual fund may not be the best option. That's because the return in that amount of time, minus the fees, may not be enough to make the investment worth it.
  • Risk tolerance - Determine how comfortable you are with risk—and invest accordingly. Understanding your own risk profile can help you select funds with strategies and asset allocations that fit your goals.

What are some risks associated with mutual funds?

  • Investors should understand that portfolio managers can't guarantee the performance of the fund, and there's the potential for loss of principal on the investment.
  • The fund's diversification can have a diluting effect on positive returns; for example, if one stock in the fund doubles its share price, that's not necessarily reflected in the fund's overall return.

What are some myths surrounding mutual funds?

  • The biggest misunderstanding regarding mutual funds is that investors own shares of the fund's holdings. That's not the case; instead investors own shares of the fund, and not the fund's underlying investments.
  • Another common myth is that mutual funds are only comprised of stocks. In fact, mutual funds can invest in a variety of asset classes including, but not limited to, cash instruments, fixed income and non-traditional income vehicles.