Investments

Mutual Funds
Mutual Funds are diversified pools of growth-oriented securities consisting primarily of stocks, bonds or money market instruments. They provide a relatively safe way for you to invest without having to possess great personal knowledge, or without having to conduct a lot of research on various investment options. You simply buy shares in the fund, which are in turn invested for you. You choose the Mutual Fund that’s “best for you” based on your investment goals and tolerance for risk.

• Diversification
  When you buy shares in a Mutual Fund, you are actually investing in all of the entities that have stocks, bonds, etc. included in the fund’s portfolio. If one company’s stock has a poor performance, it will likely be offset by another stock’s good performance. Thus, the diversification of investments helps reduce your personal risk. It is also important to note that, without a Mutual Fund, it would be very expensive to invest in all of the companies represented on your own.
• Expert Management
  When you purchase shares in a Mutual Fund, your dollars are invested by a professional fund manager with an high level of expertise including sophisticated research abilities. In addition to increasing your confidence, this saves you the time it would take to evaluate various investment options or to debate the consequences of buy-sell decisions.
• Variety
  You can choose a Mutual Fund that best corresponds with your personal investment objectives and your tolerance for risk. Generally, Mutual Funds are designed to provide: 1) aggressive growth; 2) capital growth; 3) capital growth and current income; or 4) current income. While Mutual Funds generally produce results that vary from year to year, it is also possible to invest in funds that have a fixed rate of return for each calendar year.

 

For as little as $25 a month, you can make monthly investments via electronic transfers from your bank account. Unlike individual stocks or bonds, Mutual Funds remain liquid as shares can be redeemed at market value at anytime. Investments in Mutual Funds may be made on both a pre-tax and after-tax basis, depending upon the circumstances.

 

Mutual Funds provide an excellent investment vehicle for many types of savings and investment goals. However, it is important to consult a professional financial advisor who can ensure that Mutual Funds are an appropriate form of investment for you, and that the ones(s) you select will meet your personal needs.