Mutual funds are an investment vehicle that is made up of a pool of funds collected from many investors for the purpose of investing in securities such as stocks, bonds, money market instruments and similar assets. Mutual funds are operated by money managers who invest the fund's capital to attempt to produce capital gains and income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
We are an independent financial planning firm, meaning that we are able to offer our clients hundreds of different investment options. Some of the mutual funds companies we offer:
Actively managed mutual funds have a portfolio manager that is responsible for making investment decisions within the fund. Each manager uses a methodology or discipline to select stocks or bonds. Fund managers and their team of analysts examine the companies they own to see if they still fit their criteria for securities selection. Unlike active investors, passive investors buy a security and typically don't actively attempt to profit from short-term price fluctuations. Instead, passive investors rely on their belief that in the long term the investment will be profitable. The other advantage of owning a mutual fund is diversification. When you buy a mutual fund, it might own 50 to 100 different holdings. If one stock underperforms, there are many other holdings in the pool to balance the total return of the mutual fund.
One of our Advisors at Sgroi Financial LLC can help make a customized mutual fund portfolio to fits your needs that will allow you to reach your goals.