What are mutual funds?
A mutual fund is a pool of money, supplied by investors like you, that is usually invested in stocks, bonds, and/or money market instruments. Each fund has a professional manager or a team of managers making day-to-day and minute-by-minute buy and sell decisions. By pooling your resources with other investors in a mutual fund, you can reduce—but not totally eliminate—risk. If you further diversify by purchasing shares of more than one type of mutual fund, your risk is reduced even more. Also, since fund managers buy and sell large blocks of securities, the costs are often lower than what you would pay on your own. Some fund companies will sell shares directly to investors. Others are sold through brokers, online brokerages, banks, financial planners, and insurance agents who are registered to sell mutual funds. In most cases, you can sell your mutual fund shares at any time, but certain withdrawal charges may apply.
Why Buy a Mutual Fund? Choosing a Mutual Fund Exploring Different Types of Funds A mutual fund is a pool of money that is professionally managed for the benefit of all shareholders. As an investor in a mutual fund, you own a portion of the fund, sharing in any increases or decreases in the value of the fund. A mutual fund may focus on stocks, bonds, cash, or a combination of these asset classes. The beauty of mutual funds Mutual funds offer a number of advantages, including diversification, professional management, cost efficiency and liquidity. • Diversification. A mutual fund spreads your investment dollars around better than you could do by yourself. This diversification tends to lower the risk of losing money. Diversification usually results in lower volatility, because when some investments are doing poorly, others may be doing well. • Professional management. Many people don’t have the time or expertise to make investment decisions.
Do you know what Darwin said that a group of species needs in order to survive at the top of the food chain and evolve? Well, he said that the quality most requisite in a place like this is strength- physically as well as in intelligence. Now if Darwin had somehow stumbled into a time machine and been transported to the future – our present- he would find that this theory of his has been right on track, but not very accurate. You see, our survival in this world is still depended on our strength, but the strength is rather printed on papers and riveted to the small round metal tablets. That is right. These printed notes and minted coins are your passport to a luxurious life that delights your dreams. They are most precious, and for them you could do almost anything. “Then what are you waiting for?” the stockbrokers would ask you. Why do you not invest your money in the stock market? But wait. There is a glitch involved there. Do you know that the stock market is extremely fickle?
Mutual funds are a combination of stocks, bonds and/or cash that is professionally overseen by fund managers, based on the objectives of the fund. Mutual funds offer you the advantage of buying into a pool of stocks and bonds for one price. Why should I include mutual funds as a part of my investment portfolio? Many investors include mutual funds in their portfolio in order to get potentially higher returns for their money, knowing that a professional fund manager is managing the funds. What are no load funds or O class shares? Our funds do not have any sales or commission charges and are called no load funds or O class of shares. Of course, as with all mutual funds, management fees will apply. What other fees are involved? All of the funds, waive or defer a portion of the management fees and pay other expenses to operate the fund. If you open an IRA account there is a $10.00 annual custodial fee. How can you offer mutual funds without the loads or sales commissions other banks and bro
