Mutual funds are popular investments because they offer a cost-effective and efficient way to diversify your investments by owning a variety of securities – stocks, bonds, etc., without having to make a large initial investment. Mutual funds may be ideal for some investors.
When you purchase shares of a mutual fund, you’re pooling your money with other investors and letting the mutual fund company invest and manage the money, to help meet the fund’s specified investment goal (e.g., growth, income, or a combination of the two).
Investing in Mutual Funds
Because they are professionally managed and offer diversification with generally a small initial investment, mutual funds may be suitable for some investors.
Things to keep in mind in regards to mutual funds:
- Mutual funds offer pooled investment product options similar to an ETP, and can hold well over 100 securities in the fund, with a core of 5-10 holdings.
- Mutual funds have complex structuring with varying share classes and fees, where ETPs do not.
- The expense ratio is made up of management fees, operational expenses and 12b-1 fees, and can be more costly compared to an ETP.
- Mutual funds trade at the end of the day, once markets have closed, unlike ETPs which trade throughout the day like a stock.
Mutual funds may provide diversification for your overall portfolio, because one share or one unit may represent multiple underlying stocks, bonds, and/or other asset classes.
Association Financial Services, LLC, has the tools to help you choose the right fund or basket of funds to meet your unique goals. We can design a mutual fund portfolio that’s suitable for your specific situation.
You should carefully consider the investment objectives, risks, charges, and expenses of a mutual fund company before investing in one or more of its mutual funds.
Recently, ETFs have become a more popular Exchange Traded Product (ETP) due to lower expenses and tracking market indexes. You can view more information on ETFs by clicking here.
Association Financial, LLC, and Association Financial Services, LLC, can provide you with a wide range of advisory services (whether fixed or variable investments), including:
- Annuity selection (fixed or fixed-indexed)
- Assistance in deciding when to buy and sell your investments
- Review of insurance and investment portfolios, as well as transferring assets or qualified plan rollovers
- Individual bond, commodity, equities (stocks), ESG stocks, Exchange Traded Product (ETP), investment trust, and REIT selection
- Strategic asset allocation strategies including re-balancing
- Attorney and CPA services
- and much more.
Contact us here for more information.
Investing in securities involves risk of loss that clients should be prepared to bear.
