Question : Why does an investor have to go through a special investment funds manager in order to buy mutual funds?
In other words, why can’t an investor buy mutual funds and manage it him/herself, as in the case of stocks/bonds or the similar?
investment funds

Best answer:

Answer by Mark L
Some mutual funds are only distributed to investors through brokerage firms. These mutual fund companies pay the brokerage firms a commission to market and sell their fund (these funds are called load funds). These mutual fund companies do this in order to use the large distribution network of brokerage firms instead of marketing and distributing the funds themselves. These mutual funds may have a restriction that an investor cannot purchase the fund except through a broker. This is to reward the broker and protect his commission.
There are many no-load mutual funds that can be purchased without paying a sales commission to a broker. Some mutual fund families, like T Rowe Price, sponsor mutual funds. You can open an account with TRowe and purchase their funds without paying a sales charge, however, you still have to pay an annual management fee to TRowe so that they can manage the fund’s investments and pay the fund manager and the cost of running the fund, including advertising and marketing costs. Also, some of the discount brokerage firms, like Etrade, will allow you to purchase some mutual funds without paying a sales commission. Others can be purchased by paying a small fee. At Etrade, Schwab and Fidelity (and other firms), you can buy and manage your mutual funds, just like stocks.
Since all financial products are risky and could lead to a complete loss of your money, the law requires that all brokerage firms insure that their customers have certain basic knowledge before allowing them to buy financial products. They do this by requiring that each account holder complete an account application where you have to disclose your finances, your experience in the stock market, and most importantly, your risk tolerance. Certain restrictions can be placed on a holder’s account (and the account holder’s positions are reviewed) to make sure that the account holder does not invest in risky products and then blame the brokerage firm if he loses all his money. These restrictions are referred to as the suitability rules.