Mutual Funds
A mutual fund is a company that pools the assets of many investors and purchases securities in order to pursue a common predetermined goal. With the large amount of assets that it manages, mutual funds are able to benefit from advantages that aren’t available to individual investors.
BestVest has access to competitive mutual fund providers in order to be able to offer over 1,000 funds. By accessing such a large selection of funds, we are able to offer a fund that's suitable and is well-positioned for your investment objective, style, industry, and investment class. Whether you desire a technology focused fund or a large-cap growth fund, help find a product that is appropriate.
Investing in mutual funds involves risk, including possible loss of principal. Fund value will fluctuate with market conditions and it may not achieve its investment objective. With any mutual fund investment, please read the fund’s prospectus carefully before investing or sending money.
THE ADVANTAGES OF MUTUAL FUNDS
Diversification
Mutual funds own many different investment instruments, generally stocks, bonds, and money market instruments. Because they are able to hold so many securities within their portfolio, poor performance from one investment will not generally have a dramatic effect on the fund as a whole. Poor results may even be offset by the positive performance of other investments in the portfolio.
Professional Management
The fund managers do the research for you. They select the securities and monitor the performance.
Affordability
Mutual funds generally have relatively low minimum investment amounts and allow the investor to add capital to the fund in small increments. Individual investors would generally be unable to be able to afford such a wide variety of securities due to the costs involved. Mutual funds are also able to have lower brokerage costs than an individual stock holder because of the large number of securities bought and sold at a time.
Liquidity
Mutual funds are highly liquid. Mutual fund investors can easily redeem their shares at any time, for the current net asset value (NAV) plus any redemption fees. The shares are easily and quickly converted to cash, which can either be sent to the shareholder by check or be directly deposited in the shareholder’s account.