Choose a Mutual Fund

Using Investment Management Products

There are a variety of investment products you can use to build a diversified portfolio and build wealth over time. Each one offers unique benefits that when used together, can provide you with a well-designed and diversified portfolio. Actively-managed mutual funds, passively-managed index funds and closed-end funds are examples of vehicles that allow you to access professional money management and diversify risk. These three product options (described below) afford varying levels of management expertise, costs, and buy and sell trading benefits.

Asset Classes and Objectives

Mutual Funds Types of Mutual Funds

Growth Funds
Invest In Stocks of companies with high growth rates.
Suitable For Investors who can assume more risk and price movement to achieve growth.
Value Funds
Invest In Stocks of companies that appear to be undervalued.
Suitable For Investors who want long-term capital appreciation, dividend income and less price fluctuation.
Blend Funds
Invest In Growth stocks and value stocks.
Suitable For Investors who want to build wealth over time, when either of these types of stocks are in favor.
International Funds
Invest In Stocks of companies worldwide. These funds may have a growth, value or blend style.
Suitable For Investors who want capital appreciation accross a variety of economies. Currency and political risks should be considered.
Specialty/Sector Funds
Invest In Stock of companies in a specific industry or sector of the economy, such as health care, technology, leisure, utilities or precious metals.
Suitable For Investors who want to allocate a portion of their portfolio to a particular industry.
Taxable Bond Funds
Invest In U.S. government and government agency bonds, mortgage-backed and asset-backed bonds or bonds issued by corporations.
Suitable For Investors who want current income and can assume some principal risk. When interest rates rise, bond prices decline. If rates fall, bond prices rise.
Tax-Free Bond Funds
Invest In Bonds issued by state and local governments or agencies to raise capital for public works and improvements.
Suitable For Investors who want dividends free from federal taxes and, in some cases, state and local taxes. When interest rates rise, bond prices decline. If rates fall, bond prices rise.
 
Invest In A mix of stocks, bonds, alternatives and money market securities.
Suitable For Investors who want to build wealth through a single diversified portfolio.
 
Invest In High quality, short-term U.S. government and corporate debt securities. Tax-free money market funds are exempt from federal taxes and, in some cases, state local taxes.
Suitable For Conservative investors who want stability of principal, some current income and immediate liquidity.