Mutual funds are collective investments similar to unit trusts or open-ended investment companies. Brokers allow you to buy and hold in your dollar account any mutual funds that are authorised in your country of origin and denominated in dollars. Many leading fund management groups offer funds of this type, often with no up-front fee.
The reason investors sometimes prefer vehicles like this is:
Having said that, it is worth remembering that a high proportion of mutual funds do not outperform the broader market indices. Moreover, investors have to pay a regular annual management fee to compensate the fund manager.
Not all US dollar denominated mutual funds will be available to residents outside of the US.
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