Mutual Funds

A mutual fund is a type of investment account offered by an investment company. It pools the money of many investors and then invests the money to achieve the fund’s stated goals. The resulting portfolio of investments is managed by the investment company. However, the value of mutual fund balances can fluctuate due to market risk. When shares are redeemed, they may be worth more or less than their original purchase price. Mutual funds are sold only by prospectus, so individuals are encouraged to carefully consider the charges, risks, expenses, and investment objectives before investing. You can obtain a prospectus, which contains this and other information about the investment company, from your financial professional. Be sure to read it carefully before you invest or send money. 

More about Mutual Funds<br/>

More about Mutual Funds

How much do mutual funds really cost?  Click Here for estimated costs.

  • Disclosed Costs
    • Upfront commission
    • Back-end sales charge (CDSC)
    • Operating costs
    • Management fees
    • 12b-1 distribution fees
    • Administrative costs
  • Hidden Costs
    • Trading costs
    • Ask purchase price versus limit price
    • Negative price movement costs (price impact)
  • Tax Inefficiency
    • Embedded capital gains liability even with principal loss
    • Unavoidable, short-term capital gain liability
  • Other Potential Costs
    • Window dressing
    • Risk-shifting
    • Shirking
    • Buying "cold" IPOs

Viable investment alternatives:


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