Mutual Funds
Strategic, diversified investing.
Make the most of your investments and spread your risk. A mutual fund strategically pools your money with other shareholders to create a wide-ranging portfolio that can give you greater opportunities for growth.
Benefits of Mutual Funds
A mutual fund combines money from all of its shareholders to invest in a professionally managed and diversified portfolio of securities with a set goal.
When you invest in a mutual fund you gain the following advantages:
- Expertise from professional management. Trained fund managers use their expertise to research, select and monitor the fund’s portfolio to meet its specified goal.
- Value of diversification. Fund managers invest in a variety of securities. This portfolio diversification helps to reduce your risk and offsets losses from some securities with gains from others, providing you with an overall strategy you can feel confident about in the long term.
- Ease and convenience. Mutual funds allow you to get started investing with a small amount of money. You can also automate several functions related to your investment, which saves you time.
Types of Mutual Funds
There are several types of mutual funds to consider:
- Open-End Mutual Funds. These mutual funds are not traded on exchanges and are considered a continuous new offering of securities, because when an investor buys shares, the fund company issues new shares.
- Closed-End Mutual Funds. These mutual funds have a fixed number of shares and are traded on public exchanges.
- Investment Objective Mutual Funds. These mutual funds are classified by their investment objective, which may be growth, income, "balance" (income and long-term capital gain) or other objectives.
The Prospectus
The prospectus is a document that identifies essential information about the fees and expenses, objectives, risks, history and other pertinent information about the mutual fund. The prospectus must be delivered to the investor for review to ensure they have the opportunity to make a fully informed decision about the potential investment in the mutual fund.
Investments in mutual funds involve risk, including possible loss of the principal amount invested. Past performance is no guarantee of future results. Investment return and principal value of an investment will fluctuate; investor's shares, when redeemed, may be worth more or less than their original cost. You should consider the investment objectives, risks, and charges and expenses of the fund carefully before investing. A prospectus contains this and other information about the mutual fund. Read the prospectus pertaining to the investment company's mutual fund you are considering carefully before investing.
KeyBank and its affiliated entities do not give tax or legal advice. The comments regarding the law and tax treatment in this material simply reflect current interpretations of such laws. Since laws are always subject to interpretation and possible changes, KeyBank and its affiliates strongly recommend that you seek the counsel of an attorney and/or other qualified tax advisor as to the specific legal and tax consequences of all planning concepts as they apply to the facts of your particular situation.
Investment products are offered through Key Investment Services LLC (KIS), member FINRA/SIPC and SEC-registered investment advisor.
Investment products made available through KIS are:
NOT FDIC INSURED • NOT BANK GUARANTEED • MAY LOSE VALUE • NOT A DEPOSIT • NOT INSURED BY ANY FEDERAL OR STATE GOVERNMENT AGENCY
KIS and KeyBank are separate entities, and when you buy or sell securities you are doing business with KIS and not KeyBank.
KIS and its representatives do not provide tax advice. Individuals should consult their personal tax advisor before making any tax-related investment decisions.