Personal Mutual Funds

Looking to diversify your investment portfolio but not quite sure how to do it? Mutual funds might just be the perfect diversification solution for you! Mutual funds pool money from a large number of investors to invest in a variety of stocks, bonds and other securities. These securities are professionally managed, and each investor owns his or her share of the portfolio. In essence, investing in a mutual fund protects you from the high-risk move of putting all of your eggs in one-basket by allowing you to spread out over a variety of investments. There are several mutual funds available to invest in and choosing the right one depends on your personal investment objectives. At Generations, your SWBC Financial Advisor will gladly help you identify these objectives and find the mutual fund that is best for you.

Benefits of Mutual Funds

1. Asset Diversification: Because mutual funds invest in a variety of stocks, bonds, and other securities, they can provide investors with investment diversification.
2. Professional Management: When you buy a mutual fund, you are also choosing a professional investment manager. This manager will use the money you invest to buy and sell stocks, which he or she has carefully researched.
3. Asset Liquidity: Many mutual funds offer investors a high degree of liquidity and flexibility with regard to purchase, redemption and exchange privileges.

Securities offered through SWBC Investment Services, LLC, a registered broker/dealer. Member SIPC & FINRA. Advisory services offered through SWBC Investment Company, a Registered Investment Advisor. SWBC Investment Services, LLC & SWBC Investment Company are not affiliated with this institution. Funds should not be considered a deposit of or guaranteed by this institution, may lose value and are not NCUSIF insured.

Table of Contents:

• Expert Articles/Papers
• Infographics
• FAQs

Expert Articles/Papers:

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Frequently Asked Questions:

Q: What is a Mutual Fund?

A: Mutual funds pool money from a large number of investors to invest in a variety of stocks, bonds, and other securities. Securities are professionally managed, and each investor owns his or her share of the portfolio and is entitled to profits and shares in losses.

Q: What disadvantages are there to using mutual funds?

A: People’s investment choices are very subjective, so what you may view as a disadvantage, others may see as an advantage. Nonetheless, following are some factors to think about when considering purchasing a mutual fund:

• Some mutual funds charge expenses. They could be any number of fees, including marketing, management, or brokerage fees, but fund expenses are generally paid for by you, as an investor.
• You have no control over what securities the fund buys or sells.
• The buying and selling of securities within the mutual fund portfolio generates capital gains and losses which can be passed on to you.

Q: How do I select funds I should invest in?

A: Before you make any investment, it is important to make sure you are comfortable with the investment’s objectives and the level of risk associated with that investment. When it comes to mutual funds, you can choose investments that compliment your strategies, because each fund has an objective, and there are a variety of funds with different levels of risk. Once you have a list of funds that meet your goals and risk tolerance, look at the prospectus for each fund to make sure that your goals and objectives are aligned. A financial advisor can help you select the appropriate mutual funds for your goals.

Q: How can I judge a mutual fund's performance?

A: To determine performance, you can use sales material relating to the fund, such as fact sheets, annual reports, and fund prospectuses.