Mutual Funds
Mutual funds can offer the advantages of diversification and professional management along with affordability, liquidity and convenience when planning for retirement and other financial goals. Regal offers access to nearly 300 mutual fund families and 7,500 funds. We also maintain direct business relationships with additional fund companies.
Mutual funds are open-ended fund operated by an investment company which pools money from many investors and invests in a group of assets, in accordance with a stated set of objectives such as stocks, bonds, short-term money-market instruments, other securities or assets, or some combination of these investments. The combined holdings the mutual fund owns are known as its portfolio. Each share represents an investor's proportionate ownership of the fund's holdings and the income those holdings generate. In return for the money they give to the fund when purchasing shares, shareholders receive an equity position in the fund and, in effect, in each of its underlying securities.
Distinguishing characteristics of mutual funds include: Shares are purchased from the fund itself (or through a broker for the fund) instead of from other investors on a secondary market, such as the New York Stock Exchange or Nasdaq Stock Market.
- The price of a mutual fund share is the funds per share net asset value (NAV) plus any shareholder fees that the fund imposes at the time of purchase (such as sales loads).
- For most mutual funds, shares are "redeemable," meaning investors can sell their shares at any time back to the fund (or to a broker acting for the fund). The price of a share in a mutual fund will fluctuate daily, depending upon the performance of the securities held by the fund.
- Mutual funds generally create and sell new shares on a continuous basis to accommodate new investors, although some funds stop selling when, for example, they become too large.
- The investment portfolios of mutual funds typically are managed by separate entities known as "investment advisers" that are registered with the SEC.
There are many types of mutual funds, including aggressive growth fund, asset allocation fund, balanced fund, blend fund, bond fund, capital appreciation fund, clone fund, closed fund, crossover fund, equity fund, fund of funds, global fund, growth fund, growth and income fund, hedge fund, income fund, index fund, international fund, money market fund, municipal bond fund, prime rate fund, regional fund, sector fund, specialty fund, stock fund, and tax-free bond fund.
Investing in mutual funds involves risk. You may lose some or all of the money you invest — your principal — because the securities held by a fund go up and down in value. Dividend or interest payments may also fluctuate as market conditions change and fees and taxes will diminish a fund's returns. Funds with higher rates of return may take risks that are beyond your comfort level and are inconsistent with your financial goals.
It is important to understand mutual fund investing and how to choose products that match your goals and tolerance for risk Before you invest, be sure to read a fund's prospectus and shareholder reports to learn about its investment strategy and the potential risks. As with any investment, there is risk. Investors should consider these risks, the investment objectives, charges and expenses outlined in the prospectus carefully before investing in any Mutual Fund. For a prospectus containing complete information, contact the fund you are considering or your broker. Read the prospectus carefully before you invest. Past performance is no guarantee of future results. Principal value and investment returns will fluctuate with changes in market conditions. An investor's shares, when redeemed may be worth more or less than their original cost. Mutual funds are not guaranteed or insured by the FDIC or any other government agency.