Mutual funds offer the investor immediate diversification into carefully selected and managed securities. An investment program can be started for a small amount of money (typically $500 - $1,000), and subsequent purchases can be as small as $50. We have access to a myriad of fund families and funds to help you achieve your goals.

What are they?

Mutual funds are professionally managed portfolios of stocks, bonds or other securities that pool the money of a group of investors who have common financial goals. The value of mutual fund shares will fluctuate, so that, when redeemed, they may be worth more or less than their original cost.

Who needs them?

Mutual funds can be an appropriate investment option for investors at various income levels, and may reduce the worry of day-to-day issues such as what individual securities to buy and sell, or when to buy and sell them. They offer a level of diversity that can be hard to match as an individual investor. The increased diversification may reduce volatility.

What is Covered?

The types of securities each mutual fund can buy are spelled out in a detailed investment document called a prospectus. A single fund can own dozens or even hundreds of different securities. The prospectus also describes the fund objectives and discloses the fees and charges of the fund. Read the prospectus carefully before investing.

FAMILY OF FUNDS

Many mutual fund families have a broad spectrum of funds to meet the needs and temperaments of various investors. A typical family of funds might include:

MONEY MARKET FUNDS(1)

  • Invest in short-term money market (debt) instruments
  • Yields fluctuate daily
  • Taxation of dividends received depends on underlying investments
  • Often used as a liquid, short-term storehouse for funds

MUNICIPAL BOND FUNDS(2)

  • Invest primarily in municipal bonds, or other short-term municipal debt.
  • Federally tax-free dividends.
  • Dividends may also be state tax exempt.
  • Dividend income may be subject to alternative minimum tax.
  • Typically used by high tax-bracket investors seeking current income.

BOND FUNDS(2)

  • Invest in bonds and debt-type instruments.
  • Taxability of dividends received depends on underlying investments.
  • Commonly used as a source of current income.

INCOME FUNDS

  • Invest in bonds and other debt-type instruments such as preferred or high-yield stocks.
  • Usually seek maximum current income.
  • Taxation of dividends received depends on underlying investments.
  • Appeals to investors seeking a relatively high level of current income.

GROWTH AND INCOME FUNDS

  • Often invest in both stocks and bonds or other debt-type instruments.
  • Commonly seek both capital appreciation and current income
  • Taxation of dividends received depends on underlying investments.
  • Also called balanced funds.

GROWTH FUNDS

  • Commonly invest in stocks of companies with relatively stable potential earnings growth.
  • Generally seek capital appreciation.
  • Typically follow a more conservative investment strategy than aggressive growth funds.

AGGRESSIVE GROWTH FUNDS

  • Typically invest in stocks of companies with high potential earnings growth.
  • Generally seek capital appreciation.
  • Relatively high risk/reward potential; market value can be volatile.

SECTOR FUNDS(3)

  • Generally invest in stocks and bonds of companies focusing on a particular sector of the economy.
  • Typical areas might include technology, health, energy, utilities, precious metals, etc.
  • Income and capital gains generally taxable.
  • Usually appeal to investors with a concern or interest in a particular area of the economy.

1 Money market mutual funds (MMMFs) are neither insured nor guaranteed by any government agency. There is no assurance that a MMMF will be able to maintain a fixed, net-asset value of $1.00 per share. Such funds should be clearly distinguished from money market deposit accounts (MMDAs) in banks and savings and loans. Most financial institutions offering MMDAs are protected by governmental deposit insurance.

2 The return of principal in bond funds is not guaranteed.  Bond funds have the same interest rate, inflation and credit risks that are associated with the underlying bonds owned by the funds.

3 Sector funds may experience greater short-term volatility than more diversified funds, and are more suitable for use in the aggressive portion of an investment portfolio.

Shares of mutual funds are not deposits or obligations of any bank, are not guaranteed by any bank, are not insured by the FDIC or any other agency, and involve investment risks, including the possible loss of the principal amount invested.

Before investing in any mutual fund, investors should carefully consider a fund's investment objectives, risks, charges and expenses.  Fund prospectuses contain this and other information about the funds and can be obtained from your registered representative.

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