Mutual Fund Center This section will provide you with mutual fund information pertaining
to education, portfolio diversification, investment tips, research covering load and no-load mutual fund performance,
MorningStar ratings, category rankings, descriptions, holdings, prospectuses, fund composition, weightings, fees,
expenses, toll-free phone numbers and much more.
Setting Up A Diversified Mutual Fund Portfolio
The following pages are an aid designed to assist in the development of a diversified portfolio. If
you would like to speak to a licensed professional to assists you, click on the link to the right. Please read
the prospectus carefully before investing in any mutual fund. Investments in mutual funds involve risks, including
possible loss of principal. The investment return and principal value of an investment in funds will fluctuate
and therefore an investor’s shares when redeemed may be worth more or less than their original cost.
The first step is to define the primary categories. Use the following three:
Asset Allocation:
Most mutual funds that fall into this category are actively managed by an investment professional. The investment
professional will periodically reallocate the portfolio between fixed income (bonds) funds and equity (stocks)
funds based on the investors risk tolerance and investment objectives. This strategy reduces your concern
on timing the market. The decision on when to buy or sell and what to buy or sell is in the hands of the professional
money manager.
Fixed Income:
Fixed income mutual funds invest in bonds. Investors who desire greater income and more safety should
consider weighting their portfolio more heavily in fixed income funds versus equity funds. As investors
get older with fewer income earning years ahead their investment objectives tend to shift from being aggressive
to more conservative. This can be reflective in a portfolio that shifts from capital appreciation to preservation
of capital. Fixed income mutual funds can be very conservative while others aggressive. Fixed income investments
are considered to be interest rate sensitive meaning as interest rates rise, principal value may fall.
Keep in mind, when investing in fixed income funds, the fund itself is not guaranteed, secured, or insured
even though the securities they invest in may be. Always read the prospectus carefully before investing.
Equities:
Equity mutual funds are stock funds. Investors who desire capital appreciation versus income and are comfortable
with the volatility adherent to these investments should consider weighting their portfolio more heavily
in equity funds versus fixed income funds. While fixed income funds tend to be interest rate sensitive,
performance in equity funds tend to be reflect stock market activity. Always read the prospectus and consult an
account representative before purchasing any mutual fund.
The second step is to determine your allocation. What percentage of your total assets will be invested in
each of the three categories: Asset allocation, Fixed income, and/or Equities.
100% = $ __________
Total Portfolio Assets
% in Asset Allocation
% in Fixed Income
% in Equities
$ =
$ =
$ =
The third step is to determine your allocation within each category.
