(NewsNation) — Despite recent stock market slumps and fears in the investment world, it’s never a bad time to learn about strategies to boost your investing experience.

Whether you’re a beginner or a seasoned investor, you may have heard of mutual funds.

What is a mutual fund?

A mutual fund is an investment strategy that pools your money together with other investors’ to buy stocks, bonds and other securities, according to Fidelity Investments.

Investors who purchase a mutual fund own part of the fund’s assets. If you sell one of the securities the mutual fund invests in at a higher price than what you originally paid, then you make a profit, called a net capital gain.

You can also earn money from investing in mutual funds when a security pays interest or dividends. A security is a broad term for assets that hold monetary value.

What are the pros and cons of investing in mutual funds?

Experts say mutual funds are easy to buy and sell. The strategy makes the risk of investing easier to manage since it involves a variety of assets rather than a single investment, thereby diversifying your portfolio.

It also comes with professional management; fund managers handle decisions and provide oversight.

But Vanguard noted some cons.

“Mutual funds might not be right for every investor due to higher minimum investment requirements and the lack of intra-day trading, which can limit flexibility and access to real-time market movements,” the investment management company said.