π¨πππΎππππΎππ πΊπ½ππππππ ππΎππππΌπΎπ πΏππ π¦πππ½πΎπ πππΎβπ 401(π) (πππΎπ 3(38) πΏππ½ππΌππΊππ ππΎππππΌπΎπ πΊππΎ πΊπππππππΎπ½) πΊππ½ π²π€π― π¨π±π /π¨π±π ππππ½ππΌππ πΊππΎ ππΏπΏπΎππΎπ½ π»π π¦πππ½πΎπ πππΎ π¨πππΎππππΎπππ, π«π«π’, πΊπ π²π€π’-ππΎπππππΎππΎπ½ ππππΎππππΎππ πΊπ½ππππΎπ. π±πΎπΏπΎππΎππΌπΎπ ππ βπ¦πππ½πΎπ πππΎβ βππΎβ ππ βπππβ ππ ππππ πΊππππΌπ πΎ πππΎπΌππΏππΌπΊπ π π ππΎπΏπΎπ ππ π¦πππ½πΎπ πππΎ π¨πππΎππππΎπππ, π«π«π’. π₯ππ ππππΎ πππΏππππΊππππ ππΎππΊππ½πππ πΏπΎπΎπ πΊππ½ ππΎππππΌπΎπ, ππΎπΎ π¦πππ½πΎπ πππΎβπ π π£π΅ 2π π‘πππΌππππΎ πΊππ½ π₯πππ π’π±π².
Mutual funds are a type of investment that pools money together from many different investors. This money is then used to buy a collection of stocks, bonds, or a combination of asset classes, which make up the individual mutual fund. Without a mutual fund, these pooled securities would normally be inaccessible to most individual investors, as their commissions, fees, and minimum purchase amounts would be cost-prohibitive.
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Typically, mutual funds are managed by investment companies, like The Vanguard Group. They can also be managed by financial professionals, hedge funds, banks, and other financial institutions.
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Why choose mutual funds?
Mutual funds are a popular choice among investors due to common features, such as:
Professional management: When you select a mutual fund, youβre also selecting a professional to manage the investments on your behalf. Rather than researching each investment before you buy or sell, you can leave it to the professionals to handle it for you.
Diversification: Usually, mutual funds can invest in a wide range of different companies and industries. This diversification generally helps reduce risk and volatility of a portfolio by offsetting losses in one asset class with gains in another asset class.ΒΉ
Low minimum investment: Most mutual funds are affordable and have a relatively low cost for the initial purchase of shares and future purchases, compared to buying individual stocks or bonds. While mutual funds have fees associated with themΒ², they also allow you to invest in several investments without making individual purchases and trades, which can be costly.
Check out Guidelineβs fund menu to learn more about the funds we offer and their related costs.
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βThis information is for illustrative purposes only, and is not intended to be construed as investment or tax advice. All investing involves risk, including the loss of principal. Guideline does not guarantee the performance of any specific investment.
ΒΉ Diversification does not ensure a profit or guarantee against loss.
βΒ² Please see the mutual fund prospectus for more information about costs.