A mutual fund is a pool of money from many different people which is then invested in a portfolio of stocks, bonds and/or other investments to meet a specific objective. They are very attractive to the average person because you can actively participate in a wide range of investments which would be prohibitively expensive on your own. Because mutual funds are managed by professional money managers, you only need to know which funds are consistent with your own goals and tolerance for risk.
How do they work? Instead of buying individual stocks or bonds you are purchasing a share of the fund, making you a shareholder. You can buy and sell shares in mutual funds and while you hold your shares you can participate in the fund’s rewards (increase in value) and risks (decrease in value). Mutual funds are very easy to invest in, although, fees and costs can vary widely.
What kinds of mutual funds are there?
Bond or Income Funds
Bond or income funds are made up primarily of bonds, so, what is a bond? Learn more
Stock or Equity Funds
Stock funds instantly give access to a wide range of different company stocks which most people could not afford on their own, with the added plus that the mix of stocks within a fund is managed by a professional. Learn more
Index Funds are called “passive” funds; the fund manager isn’t “actively managing” the stocks in the fund in an attempt to outperform what the market is doing, but simply trying to get as close to the index as possible. What is interesting to many investors is that index funds generally do better than most other funds, and for that reason they have become very popular. Learn more
Money Market Funds
When you want to keep a certain amount of cash on hand, whether for emergencies, purchases or simply while you decide how to invest it, money market funds make an ideal choice. Learn more
Investing involves risk, including the potential for loss of principal. Past performance does not guarantee future performance. The companies of National Life Group® and their representatives do not offer tax or legal advice. For advice concerning your own situation, please consult with your appropriate professional advisor.
Securities and investment advisory services are offered solely through Registered Representatives and Investment Adviser Representatives of Equity Services, Inc., Member FINRA/SIPC, One National Life Drive, Montpelier, VT 05604. (800) 344-7437. Equity Services, Inc. is a Broker/Dealer and Registered Investment Adviser affiliate of National Life Insurance Company.
Mutual Funds are sold by prospectus. For more complete information, please request a prospectus from your registered representative. Please read it and consider carefully a Fund's objectives, risks, charges and expenses before you invest or send money. The prospectus contains this and other information about the investment company.
Exchange Traded Funds (ETFs)
At a very basic level, an Exchange Traded Fund, or ETF, is an investment that tracks an index, a commodity, or a basket of investments like stocks or bonds. ETFs that track an index or a commodity try to mirror the performance of that index (such as the S&P 500) or the price of that commodity. Because ETFs are marketable securities, they are sold in shares that trade like a stock. Learn more
To evaluate the best investment options for you, please contact your advisor.
Diversification does not assure a profit or guarantee against loss. Investing involves risk, including the potential for loss of principal. Past performance does not guarantee future performance. The S&P Composite Index of 500 stocks (S&P 500®) is a group of unmanaged securities widely regarded by investors to be representative of large-company stocks in general. An investment cannot be made directly into an index. Investment decisions for mutual funds should not be made solely on assumptions regarding interest and dividend distributions. Investors must consider other factors including but not limited to a fund’s objective, risk factors and expenses.
Exchange Traded Funds and mutual funds are sold by prospectus. For more complete information, please request a prospectus from your registered representative. Please read it and consider carefully a Fund's objectives, risks, charges and expenses before you invest or send money. The prospectus contains this and other information about the investment company.