Orchestrated Management of Your Money:
A Harmonious Arrangement of Benefits
The Prelude to Understanding Mutual Funds
A mutual fund provides orchestrated management of your money. Small investors can earn the same potential investment return per dollar as a major investor, with a professional making the decisions on your behalf.
Investing in mutual funds involve risk, including possible loss of principal. Investments in specialized industry sectors have additional risks, which are outlined in the prospectus.
The money you invest in a mutual fund is combined with other investors' money.
Each mutual fund share you own represents participation in the securities within the fund. Dividends and capital gains produced by a fund's portfolio are paid out in proportion to the number of fund shares you own.
Professional Management
Mutual funds are unique because they allow you the possible rewards of successful money management, but without your daily involvement. Investors in mutual funds leave the primary investment decisions to professional money managers. After careful scrutiny, managers decide which securities are bought and, during ongoing review, when they are to be sold.
As a mutual fund investor, you will receive easily understood statements on a regular basis. The statement should divide the income generated by the investment portfolio into dividends and capital gains for easy tax reporting.
Diversification
Mutual funds are comprised of securities in a variety of industries and companies. Each investor within the fund owns interest in each security. This allows you to buy into the kind of diversification that otherwise might not be accessible. The advantage of diversification is the ability to limit individual risk; however, there is no assurance this will occur. Diversificiation cannot guarantee protection against losses.
While some investors purchase a single fund, others choose a "family" of funds--several different funds available from one organization. In a family, you can readily transfer portions of your investment into other funds with different objectives as your needs or financial circumstances change.
Liquidity
Many people choose mutual funds as the vehicle for their investment program because funds are readily available and easy to sell. By law, mutual fund investors have the right to cash in all or part of their shares at any time for the current market value. The value of redeemed shares may be more or less than the original cost and contingent deferred sales charge may apply.
Growth
The gain in popularity of mutual funds is due in part to their suitability as a long-term investment.
Tax Free Income
In addition to their other benefits, some mutual fund categories offer protentially all tax free income. Mutual funds that invest in the bond issues of state and municipal governments pay dividends that are derived from those bonds and are therefore exempt from federal income taxes. Also, state specific municipal bond funds may be exempt from that state's income taxes. Mutual funds that invest in U.S. Government Securities pay dividends derived from the interest of those securities, and thus are exempt from state and local income taxes. Depending on the Investor's individual circumstances, income may be subject to the alternative minimum tax.
An investor can lose money when investing in government bond funds. Fund itself cannot be guaranteed and fund's performance will vary.
Mutual Funds Perform For A Wide Audience
Planning for a child's college education? Preparing for retirement, or seeking a steady or increased income?
Whatever your personal financial goals may be, or whatever amount you wish to invest, there may be a mutual fund portfolio to help meet your goals and satisfy your risk tolerance.
Investors seeking an alternative investment may find mutual funds a popular choice. Keep in mind, mutual funds are not FDIC insured, may lose value and are not bank guaranteed. Return and principal will fluctuate so that an investor's shares when redeemed, may be worth more or less than their original cost. Some of their benefits include: Professional Management, Diversification, Liquidity and Opportunity for Growth.
There Is A Mutual Fund In Tune With Every Objective
- Long-Term Growth
Interested in growth which may outpace the rate of inflation?
Growth Funds invest in established firms with a history of price appreciation.
- Value Funds
Invest in companies believed to be undervalued in the market relative to their long term potential.
- Steady Income
Looking for a conservative investment?
U.S. Government Funds are historically conservative, have low volatility, and are generally low-risk investments. Keep in mind, past performance is no guarantee of future results.
- Growth and Income
Seeking a higher level of current income?
Balanced Funds hold stocks, bonds and cash chosen to obtain both moderate growth and income.
- High Return
Ready to take some calculated risks?
Aggressive Growth Funds strive for maximum return. They use aggressive trading strategies and select more volatile, high growth-potential stocks. This should not be considered by anyone unwilling to take significant risk.
- Tax Free Income
Eager to save taxes on your earnings?
Municipal Bond Funds pay dividends that are exempt from federal income taxes. U.S. Government Securities Funds pay dividends that are exempt from state and local income taxes. State Specific Municipal Bond Funds pay dividends that may be exempt from state taxes and are exempt from federal income taxes. Income may be subject to alternative minimum tax. Consult your tax advisor. An investor can lose money when investing in government bond funds. Fund itself is not guaranteed and fund's performance will vary.
- International Investing
Want to participate in opportunities abroad?
International or Global Funds invest mostly in the stocks and/or bonds of companies in foreign markets. International investing involves unique risks relative to factors such as changes in currency valuations and the impact of political, social, or economic developments.
- Additional Diversification
Want to spread your risk even further?
Small-Capitalization and/or Mid-size Capitalization Funds invest in companies with innovative products, services or technology in growing markets. Small Cap investments may be subject to a higher degree of risk than more established companies' securities. The illiquidity of the small cap market may adversely affect the value of these investments.
Before making any investment decision, speak with an investment professional to design an asset allocation strategy based on your financial objectives and risk tolerance.
Investors should consider the investment objectives, risks, charges and expenses of the investment company carefully before investing. The prospectus contains this and other information about the investment company. You can obtain a prospectus from your financial representative. Read carefully before investing.
Securities & Insurance products offered through LPL Financial, & its affiliates, Member FINRA/SIPC.
|
Not FDIC Insured |
No Bank Guarantee
|
May Lose Value |
Not A Deposit |
Not Insured By Any Government Agency |
The LPL Financial registered representatives associated with this site may only discuss and/or transact securities business with residents to the following states:
Illinois, Indiana
|
