Mutual Funds
Mutual funds are not just investments; they offer an effective and convenient way to structure a financial plan.
A mutual fund is a regulated investment company that invests money on behalf of individuals and institutions. Investors in a mutual fund are called shareholders. Professional investment managers use the pool of money to buy securities that, in their judgment, will help the fund achieve its stated objectives.
Mutual funds offer several advantages over individual stocks and bonds:
- Professional Management
- Mutual funds are managed by experienced professionals who monitor your investments on your behalf.
- Diversification
- Your money is often invested in hundreds of securities. A diverse mix of holdings can reduce volatility because the effect of one bad investment will typically be offset by better results in the rest of the portfolio.
- Liquidity
- Fund sharholders can generally sell shares at any time at the current market value.
- Convenient Services
- Most mutual fund companies offer shareholders a range of services, including online account access, automatic investing and withdrawal programs, reinvestment of fund distributions and exchanges between funds.
What types of funds are available?
Mutual funds generally invest in:
- Stocks
- Bonds
- Short-term money market securities
- A mix of these securities
Some funds can invest all over the world or only in certain regions; others focus on specific industries or sectors of the economy. There are funds that invest only in large companies and funds that invest in small companies. In all, more than 8,000 mutual funds are available in the United States.
Investment Guidance
Grage Financial Group makes finding the right answer easy. Whether you just need a little direction or you want us to do it all for you, we can help.
