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In 1924, Massachusetts Investors Trust began operating in Boston,
the first mutual fund company in the United States. A
mutual fund pools the savings of a large group of individual investors, and uses the
capital to buy a basket of many different stocks. This allows a single
investor to diversify their investment, and not buy just one or two
stocks which is more risky. Another great benefit of a mutual fund is that it is
managed by professionals in the industry.
From its inception, Mass Investors Trust published
comprehensive reports to its investors, a benchmark procedure that all
regulated mutual fund companies comply with today. The company was also one of the first investment companies to establish an
in-house research department.
Mass Investors Trust was a real trailblazer. Boston was a
huge competitor to New York as a global financial capital, and still is
today, due to innovation and integrity. Mass Investors Trust went public in 1928, and eventually became
MFS Investment Management, which thrives today.
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