Conservative and Aggressive Mutual Fund Investment Banking

1. Conservative and Aggressive Mutual Fund Investment Banking Many financial institutions and investment advisory services offer investors different allocation models as tools and guidelines for constructing investment portfolios. Depending on the relative composition of assets in these portfolios, a certain asset mix may be considered conservative or aggressive. There is no set formula for what constitutes a conservative or aggressive portfolio. Great variability can exist, yet a conservative asset mix strategy tends to favor lower risk and income generation, whereas an aggressive mix is more willing to stomach risk in exchange for more vigorous returns. While the two may seem diametrically opposed, they are not so far- flung in that they share many of the same building blocks. A mutual fund can be defined is an entity that pools cash from a variety of investors for the sole purpose of investing the cash in shares, bonds, treasury bills etc. (all together called a portfolio of investments). The profit derived from the diversified pool of investments is shared to investors in the funds annually or semiannually or as stipulated in the fund prospectus. Mutual Funds are operated by professional investment banks or firms like Paradigm Capital Management, made up of people who are savvy with the money and capital market. Conservative Mutual Funds If the idea of laboriously researching and investing in individual stocks doesn't appeal to you, a conservative mutual fund might be more your style. Their managers and analysts research potential investments full time, so they know their stocks the way you know which kid will eat which vegetable. Conservative mutual funds offer a lot more flexibility than investing in individual companies, because each one represents a diversified pool of investments. They'll often hold individual

2. "conservative" stocks, but they can also buy higher-risk companies for the potential yield, and balance them with more conservative vehicles including bonds and interest-bearing investments. Many aggressive mutual funds have the term "aggressive growth" or "capital appreciation" or "capital opportunity" or "strategic equity" within the fund name. However, this is not always the case. To be sure a particular fund is an aggressive mutual fund; an investor can look at one of the best mutual fund research sites and look for the specific mention of "aggressive growth" under the Fund Objective. Investors can also look for the stated objective within the mutual fund prospectus or they may go directly to the mutual fund family website and find the objective there. Investors should be cautioned that a mutual fund with the words "aggressive growth" in its name can be (and often is) categorized as a growth fund. There is a difference in meaning in category and objective: In simple terms, category is a label for reference and objective is an investment strategy or philosophy. Therefore, if you already have a growth fund in your portfolio, you may not need an aggressive growth fund in addition to it. See stock overlap for more cautions on having funds with similar investment objectives. Paradigm Capital Management is a trusted leader in small cap investing and employs a disciplined, bottom-up approach with an emphasis on fundamental analysis and extensive management contact. The Paradigm Funds family of no-load mutual funds makes the firm’s small-cap and SMid-cap strategies available to fee-based financial advisors and retirement professionals. Paradigm Funds are widely available on more than 50 no-load platforms. To learn more about how our capabilities align with your long-term goals, please contact us at (518) 431-3500 Or visit here: http://paradigmcapital.com/