What is a Mutual Fund?
A mutual fund is an investment company that pools your money with that of many other investors with common financial objectives.
Mutual Fund benefits include:
| Professional Money Management: Mutual funds allow you to delegate day to day investment decisions to the fund's managers who decide when and where to buy, which securities to hold, and when to sell. These managers draw on extensive research and experience in making the investment decisions. | Diversification: As a mutual fund shareholder you achieve much broader diversification than most investors can on their own. Each mutual fund share represents a proportionate ownership in the entire portfolio of the fund. As an example, in an equity fund you own a proportionate share in each outstanding stock position. This diversification may help to reduce risk of owning only one security. | |
| Low Minimum Investment: Most mutual funds have a low investment minimum that allows investors to start an investment program. The low minimum allows small investors to enjoy the benefits of professional management that are often reserved to only large institutional investors. The Activa Value Fund's minimum initial investment is $500 for tax-deferred accounts, and $2500 for other accounts. | Liquidity: Mutual Funds give investors easy access to their investment. Open end mutual fund companies will buy back your shares on any business day at the then current market value. Most mutual fund redemptions are requested either via telephone or mail. In most cases, redemption proceeds are mailed in check form to the shareholder of record on the business day following receipt of the request. |