A mutual fund is an investment option that should be strongly considered as part of your offensive financial game plan for the average investor. Mutual funds are a form of a collective investment in which money from many investors is pooled and invested in stocks, bonds, short-term money market instruments, and/or other securities under the direction of a fund manager.

Mutual funds can help reduce your investment risk when compared to investing in individual stocks or bonds.Mutual funds provide diversification because they invest in many businesses and can change the team. If one company in the pool goes bankrupt, you won’t lose all your money because the pool has other options. .

With a mutual fund, you can have a little greater peace of mind knowing that it would be very difficult for all the companies in the pool or portfolio to go bankrupt. They also allow an individual to have their money invested higher priced companies that they wouldn’t be able to buy on their own.

The hardest part of investing in a mutual fund is determining the best fit for your individual profile. Should you invest in large cap? Mid cap? Small cap? International? Bonds? What is a turnover ratio? Is the fund diversified in sectors of comfort or not?

We coach our clients through the process as it is up to each investor to make the final decision as to when to buy and sell. Our role is to ask questions, investigate and provide information to make a decision.

Where many people fail at investing is when they don’t ask good questions, don’t review income statements or pay attention. Let’s talk strategy!