GROW NET WORTH BEYOND YOUR COMPANY'S REVENUEMutual Funds For Business

No Hassle Diversification

Mutual funds can be an essential part of a sound investment strategy. Designed as a diversified investment strategy, mutual funds provide a quick option to put your money in many different stocks, bonds, and market segments without compiling all the research on your own. Mutual funds are available to match your risk tolerance, while maintaining liquidity.

What is a Mutual Fund?

Mutual funds can be thought of as a basket of investments. Run by professional managers, the capital of thousands of investors is pooled to purchase many different stocks and bonds in order to reduce overall risk as compared to buying individual stocks, while attempting to maximize returns through volume purchases. Mutual funds may be grouped by risk level, industry, growth strategy, or many other specializations. With so much variety, our advisors can help you find a mutual fund that matches your needs.

Types of Mutual Funds

  • Open-End Funds: Unlike stocks, open-end funds are bought directly from the fund, not on the open market. Funds must keep cash on hand to match redemptions, but there is no limit on the number of shares an investor may purchase. Open-end funds are more secure, but less liquid than closed-end funds.
  • No Load Funds: In a no load fund, there are no commissions or sales fees paid to advisors or brokers who sell them. Many funds do have fees paid to the fund managers who monitor the performance of the fund and control the asset mix to reach the established targets.
  • Load Funds: Commissions and sales fees may be paid to brokers or advisors that sell these funds.

Mutual Fund Risk Categories

Mutual funds that are governed by risk tolerance typically fall into one of four categories: Growth, Growth & Income, Income, and Capital Preservation. The goals you hope to achieve for your business, and the timeline you establish, will determine which mutual fund type best matches your needs.

  • Growth: Considered the highest risk category, Growth funds seek to maximize long-term results by investing in companies offering higher yield potential.
  • Closed-End Funds: Similar to an IPO (initial public offering), a limited number of shares are offered to the public when a closed-end fund is created. Once the fund is closed, it is then sold on an exchange where any investor may buy or sell shares. Generally, closed-end funds offer a better return than open-end, but carry more risk.
  • Growth & Income: Similar to Growth funds, Growth & Income funds invest long-term, but provide income to the investor in the form of dividends. These funds focus on large, well-established companies and include some bonds.
  • Income: Investing in common stock, corporate and government bonds, Income funds tend to be less volatile that the stock market, but may be more affected by changes in interest rates.
  • Capital Preservation: Highly stable, Capital Preservation funds invest in short-term bonds and securities with the goal of preserving an investor’s money, while providing them a modest return.

Why You Should Invest in Mutual Funds

While all investments carry risk, mutual funds can give your portfolio a better balance. Having a professional manager oversee the fund allows you to monitor your business, not the stock market. The ability to select funds that match your comfort level make mutual funds an easy, attractive option for any savvy investor.

Investors should consider the investment objectives, risks, charges and expenses of an investment company carefully before investing. The prospectus contains this and other information and should be read carefully before investing. The prospectus is available from your investment professional.

Investors should consider the investment objectives, risks, charges and expenses of an exchange traded product carefully before investing. The prospectus contains this and other information and should be read carefully before investing. The prospectus is available from your investment professional.