This week, which of the following activities do you think you'll have time for?
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Studying the annual reports of four companies |
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Performing in-depth research on promising new technologies in the fields of medicine or technology |
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Reviewing the latest economic forecasts |
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Fortunately, as a mutual fund investor, you have a team of financial professionals who do this work for you, so you can pursue your investment goals AND enjoy your life.
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Five advantages of mutual funds
Besides saving you time, mutual funds offer investors five important benefits:
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1. Diversification
A mutual fund invests in many different securities - typically more than most investors can afford on their own. When you invest in a widely diversified portfolio, you lessen the risk you might face if you put all your eggs in one basket. In a mutual fund, the performance of one security is less likely to greatly impact the performance of the mutual fund.
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2. Professional Management
Fund managers carefully monitor market trends, economic conditions and the performance of individual securities. In addition, fund families like First American Funds have investment analysts to help them identify and monitor trends and individual securities.
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3. Affordability
Most mutual funds are very affordable. For example, individual investors may purchase many First American Funds for as little as $1,000 in regular accounts, and $250 in retirement accounts. After your initial purchase, you may set up a systematic investment plan for as little as $100 in regular accounts, and $25 in retirement accounts.
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4. Liquidity
Mutual funds are considered to be "liquid" securities - you can sell shares or buy more at any time. Just keep in mind that the amount you receive will be equivalent to the current market value, which may be more or less than your original investment.
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5. Variety
Leading fund families offer many different types of mutual funds. First American Funds, for example, offers more than 40 different funds for individual investors.
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Why so many? Because investors have different goals, time frames and attitudes toward risk and reward. Mutual funds allow you to tailor an investment program to your needs.
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| For more information - consult a financial professional |
For more information about the advantages of mutual funds, make an appointment with a financial professional today.
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| Mutual fund investing involves risk; principal loss is possible. |
