Mutual Funds

A Better Way to Invest...

Mutual funds are an investment vehicle made up of a large portfolio of stocks, bonds and other securities. Funds can be managed with a fund company, a broker dealer or an advisory company. Most mutual funds hold over 100 securities or bonds, which helps to diversify your investment portfolio. These are an investment for both retirement and non-retirement planning

When you buy a mutual fund, your money is combined with the money from other investors and allows you to buy part of a pool of investments. They can hold a variety of different investments, where it can make it easier for the average investor to diversify rather than buying separate stocks and bonds.

Mutual funds are good for people who do not have the knowledge, experience or time to manage their own investments, as these are professionally managed by portfolio managers who decide what, where and how to buy and sell investments with the money in the fund.

With thousands of mutual funds to choose from they can be used to meet a variety of financial goals. The nice things about these funds is that they allow anyone to hold a diversified portfolio no matter how much money you are investing. Whether you are a conservative or an aggressive investor, there are funds to meets those needs.


Types of Mutual Funds Include:

  • U.S. and International stocks.

  • Large, Medium and Small Company stocks

  • Growth and Value stocks

  • Specialty Stocks


Types of Bond Funds Include:

  • High Yield

  • Corporate

  • U.S. Government

  • International Bonds

There are also asset allocation model funds that diversify based on your risk tolerance. Target date funds are available that invest your money based on your age to retirement.

Before you invest in mutual funds, always know what class of fund you are going into. Some of the things you should know are; is there a font end or back end charge, what are any other fees or expenses of the fund, the company you are dealing with and the broker dealer or advisor.

There are no guarantees or expected returns with mutual funds. You can either make or lose money. Usually the higher the risk the higher the return, but also the higher the loss.

As with any investment, if you’re not sure what your doing or have any questions, it is wise to speak with a qualified advisor who has years of experience and knowledge. It could make all the difference for your financial planning and comfortable retirement.