Mutual funds are used by many investors to help accomplish their financial security goals. There are a lot of reasons to invest in mutual funds. They may be especially useful when you’re investing for your:
- Education funding needs
- Personal investment portfolio
Advantages of Mutual Funds
Mutual funds can offer some real benefits to the investor. Of course, the benefits could vary depending on the mutual fund, but here are a few common advantages:
- Mutual funds are managed by companies that work in the financial markets all day, every day. That means they have immediate access to timely research and news that the average investor cannot get. These professionals decide what to buy and sell and when. This makes mutual funds a convenient way to keep up with opportunities without the trouble and paperwork, and the cost is less than hiring a professional money manager.
- Due to the volume of trading they do, these companies have generally also negotiated lower commissions than individual investors can get. That could be a significant savings for you.
- Mutual funds can give you automatic diversification. Your money is “pooled" with other investors' money. The fund(s) you choose will contain many different securities, so, your buying power is enhanced. A $500 mutual fund investment can buy you holdings in many securities; a $500 investment in an individual stock gets you shares in only that one stock. This method of diversification is an especially useful way for smaller investors to participate in the stock and bond markets.
- You can choose a fund to fit you. There are thousands of mutual funds available in the marketplace. Each has investment objectives, which are explained in its prospectus. All you need to do is find one that meets your particular goals and personality, and start investing.
Even easier, a COUNTRY Financial® representative can help you select the right funds for your situation.
Find a COUNTRY Financial representative near you.
Mutual fund investing involves risk; principal loss is possible.
Diversification does not assure a profit or protect against loss in a declining market.
Mutual funds are not deposits or obligations of, or guaranteed by COUNTRY Trust Bank® or its affiliates, nor insured by the FDIC, the U.S. government, or any governmental agency.
A mutual fund's investment objectives, risks, charges, and expenses must be considered carefully before investing. The prospectus or summary prospectus contains this and other important information about the investment company and may be obtained by calling 1-866-551-0060. Read it carefully before investing.