Mutual Funds - A Turnkey Choice

Mutual funds offer the individual investor a hands-off approach to investing.  When investing in mutual funds, investors don’t directly own the stocks or bonds, but rather share equally in the profits or losses of the fund’s total holdings, thus the “mutual” in “mutual funds".

Advantages of investing in mutual funds include:

  • Less risk through diversification – A single mutual fund may invest in hundreds of individual securities at once. This way, if any one security does poorly, the others are there to help offset the risk.
  • Lower costs – Pay a low expense ratio on a single account rather than paying high commissions on every trade you make when buying and selling individual securities yourself.
  • Professional management – No need to keep track of every security in your mutual fund. The fund is managed by experts who take care of that for you.
  • Convenience – Buy and sell mutual fund shares online or by phone and set up automatic investments and withdrawals.

Yet, with thousands of mutual funds to choose from and so many services that evaluate fund performance, learning how to interpret mutual funds yourself is often quite difficult to do unless you are working with stock, bond and hybrid funds daily.

This is where professional expertise can be incredibly valuable.  A good financial advisor understands each individual’s unique situation and will really listen and help guide you through investing in mutual funds and provide sound advice based upon your concerns.

Schedule an Appointment


XCEL FCU is a credit union serving members in New Jersey, New York and across the country.