Mutual Funds
A mutual fund is an investment vehicle that allows investors to pool dollars together to match a predetermined investment objective as listed in a fund’s prospectus. These pool dollars are invested in a blended variety of stocks, bonds, money market instruments, cash or cash equivalents, or other similar assets.
By investing in a mutual fund, an individual investor receives the following benefits:
- Professional Management: The money manager is responsible for researching, selecting, and monitoring the investment vehicles in the mutual fund.
- Diversification: A diversified portfolio strives to help smooth out the ups and downs of an investment portfolio. Simply stated, "Don’t place all your eggs in one basket."
There is no guarantee that a diversified portfolio will enhance overall returns or outperform a non-diversified portfolio. Diversification does not protect against market risk.
Investing in mutual funds involves risk, including possible loss of principal. Investors should consider the investment objectives, risks and charges, and expenses of the funds carefully before investing. The prospectus contains this and other information about the funds. Contact one of our investment professionals to obtain more information. The prospectus should be read carefully before investing or sending money.
