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Mutual Funds

Mutual Funds. Goal. Diversification Professional Money Management Easy Time and Energy Saver Higher returns than if you ‘do it yourself’. Structure. Money from individuals is pooled by a fund management company (Vanguard / Fidelity).

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Mutual Funds

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  1. Mutual Funds

  2. Goal • Diversification • Professional Money Management • Easy • Time and Energy Saver • Higher returns than if you ‘do it yourself’

  3. Structure • Money from individuals is pooled by a fund management company (Vanguard / Fidelity). • Fund Manager (Advisor) buys and sells stocks or bonds with the pooled funds. • Individual investors benefit from diversification with little investment.

  4. Key Metrics • Net Asset Value (NAV) • A ‘per share’ measurement of the total value of the assets held by the mutual fund • Performance • Percentage gain in fund value over a specified time period (annually, quarterly, etc.)

  5. Fees • Load (Sales fees) • 12(b)-1 fees (marketing fees) • Management fees • www.morningstar.com

  6. Taxes • Till death do us part….

  7. Growth Aggressive Growth Value Income Equity-Income Bond Asset Allocation Balanced Growth and Income Sector Index Conscience (Socially Responsible Mutual Funds Categories

  8. If You Can’t Beat ‘em Join ‘em • Index funds historically out-perform actively-managed mutual funds • Lower fees • Lower taxes • More sleep at night…

  9. Tools • Morningstar (the king) • Matching funds to your objectives • Portfolios constructed entirely with funds • Diversification by buying funds that balance each other

  10. Let’s Take a Closer Look • www.fidelity.com • www.janus.com

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