Mutual Funds

A Mutual fund is a company that makes investments on behalf of investors with similar goals (ex: growth and income). In short, mutual funds are pools of money managed by an investment company.One buys shares of the mutual fund and as a shareholder you incur the funds gains, losses, income and expenses in an amount proportionate to your investment.

  • The capitalization is normally not fixed so shares are issued by demand.
  • Aggressive growth funds; seek long-term capital growth by investing primarily in stocks of fast-growing smaller companies or market segments.
  • Asset allocation funds; has its assets allocated equally among the fund’s portfolio of investments and rebalanced or re-allocated as market conditions change
  • Automatic Reinvestment; is employed by some funds that reinvest dividends, interest or others earnings which automatically buys you additional shares.
  • Balanced funds; have portfolios of stocks, bonds and/or money market accounts
  • Bond Funds have portfolios of bonds.
  • We assess your tolerance of risk verses reward to pick the right fund for your needs and demands.
  • The advantage for using a mutual fund is its ability to offer affordable diversification.
  • Diversification is can be expensive when buying a generally recommended thirty different securities with inverse yielding patterns. Not to mention, your limited knowledge of each security for the selection process.
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