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Mutual Funds

At Investment Insight Wealth Management, LLC in Long Island, NY, we know investments can be tricky business. Our team is experienced and highly knowledgeable of various investment options. Whether you are new to the world of investing or you have an extensive portfolio, we will strive to provide the best possible customer experience.

Mutual Funds Defined

Mutual funds are an investment that allows a group of investors to come together with their money and hire a portfolio manager. The manager takes the funds assets and invests in a variety of stocks, bonds, and other securities. The manager continues to buy and sell according to the fund’s prospectus. A mutual funds prospectus is essentially what an owners manual is to a car it dictates how to the fund is to be treated and managed.

Mutual funds are charged fees to operate and maintain. These fees are what pay the manager to manage the funds. Some mutual funds may charge an upfront fee to investors when investors buy into the fund, and yet others delay the costs until the shares of the fund are sold. Some funds, known as no-load funds, have no sales charges. Sometimes, fees known as 12b-1 fees are charged to cover marketing and distribution costs.

Mutual funds are an attractive investment to many people, because you can invest a few thousand dollars into a single fund, and have access to a diversified portfolio. Otherwise, to get a properly diversified portfolio, you'll have to buy individual securities, exposing you to more difficulty and risk. Though the risk is involved in any investment and mutual funds are not a guaranteed safe bet, they are built on the principle that you should never put all your eggs in one basket. This means that if one company in your mutual fund tanks, you will likely still be afloat with what’s left in your portfolio.

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