Benefits of Mutual Funds
Professional Money Management
- Develop investment strategy and chooses investments that best match the fund objective.
- Decision based on extensive knowledge and research of market conditions and financial performances.
- Adjust investment mix as economic conditions change.
- Diversifies portfolio to reduce risk.
Accessibility
- Easy to buy either through an investment professional or directly from an investment firm.
- Generally offered as investment selection in 401(k) plans and other employee benefit plans.
- Offer wide variety of services to meet shareholder's needs.
- Variety of investment minimums allowing participation at virtually any dollar amount.
Tax Advantages and Economic Opportunity
- Allow investors to contribute to and benefit from investment economy.
- Potentially tax deductable or tax deferred if used within certain qualified retirement plans.
- Potentially reduces taxes by reducing tacable income.
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